Ripple is currently ambitious of setting up its foothold in the region where its crypto offerings are at their peak i.e. Asia. In its recent move, Ripple has been acquiring 40% shares in a company called Tranglo, which is also a payment processing company. However, the company’s prime focus is to cater to APAC markets i.e. the markets existing in the Asia Pacific region.
The announcement was made by Ripple Labs on 30th March, 2021. The purpose of the acquisition has been told for strengthening and expanding its presence in APAC.
While the issue between Ripple Labs and US Securities & Exchange Commission is still alive, however, the company is expanding otherwise. Though it has lost a major part of its business in the US markets yet Ripple has been able to set up a stronghold in Asian markets. Since last year, Ripple Labs has entered into several agreements of coordination with various payment processing companies of Asia. Similarly, it has been expanding its payment network in the markets which are part of European and African regions as well.
Ripple told that acquiring stake in Tranglo will compensate Ripple a great deal particularly cross-border payment processing. For instance, the customers of RippleNet will be able to utilize Ripple’s service called “On-Demand Liquidity”. In addition, the customers can avail leverages with regard to Line of Credit. This would in return compensate working capital and align across the globe transactions in further markets, told Ripple Labs.
Through Tranglo, Ripple Labs will be able to expand its crypto offering and payment processing services in Southeast Asia. The first country to have such services has been told to be the Philippines. Thereafter the services will be launched in other countries of the Asian region, informed Ripple Labs.
For the purposes of cross-border payment transactions, blockchain technology is utilized by RippleNet. While apart from Ethereum and Bitcoin, Ripple’s XRP is one of the highly in-demand crypto trading assets in the world. But because of Ripple’s dispute with US watchdog, some two months ago, Ripple’s business was seriously jeopardized. While the dispute is still going on but more or less Ripple has had divert its attention from US to other regions.
Because there were no problems in Asia with regard to XRP’s status, Ripple has been trying improve its business in the region.
At the occasion of Ripple’s announcement, RippleNet’s General Manager, Asheesh Birla, also commented on the acquisition. Birla was of the view that Tranglo’s infrastructure is a deal for Ripple because it is one of the robust payment processing systems in Asia. In fact the customer services provided by Tranglo are unmatched, stated Birla. He was certain that partnering with Tranglo will ensure the expansion of Ripple’s On-Demand Liquidity in the countries part of the Asian region.