Last year, Ripple bought into Asian financial services provider Tranglo. The latter is now reporting to significantly expand this usage after a successful pilot with XRP as a bridge currency.
Ripple can be happy about a good news for XRP apart from the process with the US Securities and Exchange Commission SEC. The Asian financial services provider Tranglo announced via Twitter that it now offers to use Ripple ODL (On Demand Liquidity) on all its payment corridors. There, XRP is anchored as a bridge currency to enable real-time, low-fee international transfers. Ripple had announced its entry into Tranglo in March 2021, buying a 40 percent stake in the company. Tranglo now points to a successful pilot project for ODL since September 2021. In 100 days, around 250,000 transactions were processed via Ripple ODL with XRP, which had a combined volume of 48 million US dollars.
In a press release, Tranglo describes the benefits and vision for using Ripple ODL and XRP. Typically, banks must hold reserves when transacting between different currencies and across borders. With ODL, this is not necessary because Ripple guarantees liquidity through XRP. This gives institutional users of ODL the advantage of being able to more efficiently design growth with its capital, Tranglo writes. “Our remittance partners want to enter markets as quickly as possible and at the lowest cost,” Tranglo CEO Jacky Lee is quoted as saying.
Background on Tranglo and Ripple (XRP)
Founded in Malaysia in 2008, Tranglo says it now has a presence in more than 100 countries through partnerships with 1,300 banks, 2,500 mobile companies and 130,000 money centers. Its core business is international transactions of smaller amounts, where remittances from migrant workers to their home countries and small business needs play a major role. This translates to more than $4 billion in volume annually. Ripple had decided to get involved with Tranglo after losing its previous flagship partner MoneyGram as a result of the SEC indictment. For Ripple, ODL is the key building block to prove XRP in its original concept as a bridge currency.
25 payment corridors are currently maintained by Tranglo, where ODL and XRP can be brought to bear via RippleNet. The regional focus is on Australia, Japan, Singapore and the Philippines. The network is to be expanded. Figures from the pilot project show that an average transaction on Tranglo has a volume of around US$200. This is where savings in fees come into their own, as with the classic Swift solution, it is often necessary to factor in 10 US dollars or more.
Conclusion: Ripple and XRP smell morning air
In the proceedings of the SEC against Ripple, which began a good 14 months ago, the crypto company was able to score points for itself recently and a positive verdict for XRP seems within reach for many observers. Tranglo’s commitment to XRP comes at the right time, even if it is unclear how much Ripple will pay for this partnership. Also important these days, Ripple CEO Brad Garlinghouse has made it clear on Twitter that his company supports all sanctions against Russia. Since Russia is being excluded from Swift and other financial channels are also being drained dry by the West for Russia, there are scenarios in the crypto scene about how Bitcoin and Co. can offer ways out of the financial misery for Moscow. Ripple is taking a clear stance here and is putting a stop to speculation.
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