Blockchain payments firm Ripple has agreed to buy a 40% stake in Malaysian cross-border payments specialist Tranglo.
The tie-up with Tranglo will enable Ripple to accelerate the reach of its On-Demand Liquidity (ODL), which utilise the digital asset XRP to facilitate instant money transaction.
Furthermore, Tranglo will support the company’s existing corridors, including the Philippines, in addition to launching additional ODL corridors within its current network.
Ripple said that its investment in Tranglo is part of its strategy to bolster the payments ecosystem in Southeast Asia, which is a fastest-growing region for RippleNet adoption.
Last week, the company appointed Brooks Entwistle as managing director of Southeast Asia to lead and scale its operations in the region.
Ripple general manager of RippleNet Asheesh Birla said: “Tranglo’s robust payments infrastructure coupled with their unparalleled customer service and quality makes them an ideal partner to support our expansion of On-Demand Liquidity starting with the Southeast Asia region.
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“We are excited to continue and carry out our shared mission to transform cross-border transactions to be faster, cheaper and more secure with blockchain technology and digital assets.”
As part of the deal, Ripple vice-president of product and delivery Amir Sarhangi and Entwistle will join Tranglo’s board of directors.
TNG Fintech Group, which will remain the majority shareholder in Tranglo, will collaborate with Ripple to ramp up the further expansion of Tranglo’s global remittances network.
Commenting on the development, Tranglo CEO Jacky Lee said: “Tranglo has always prided itself on making cross-border transactions faster, cheaper and more secure. By partnering closely with Ripple and introducing On-Demand Liquidity to new markets, we aim to further that ambition to provide accessible and equitable financial services to the masses.”
Last October, it was reported that Ripple is weighing a move of its headquarters to London due to its frustration with the US regulators over XRP cryptocurrency’s legal status.