Despite the ongoing legal battle with the SEC, Ripple has nevertheless initiated plans to expand into Southeast Asia. This was achieved through the acquisition of a 40% stake in a Malaysia-based company. This is sure to open new doors for Ripple as it will regain momentum after recent losses and hardships.
40% of the shares in Tranglo acquired
The above investment has been made with Tranglo, a company based in Kuala Lumpur, Malaysia that deals with cross-border payments. The stake was 40%, and this partnership will potentially enable Ripple to meet the ever-growing customer demand in the region while expanding the on-demand liquidity (ODL) service provided by RippleNet.
According to representatives from Ripple, plans to expand into the Southeast Asia region have been considered for some time. The main reason for this decision was to call for improvements to the cross-border payment system reintroduced there, and this had to be done by using “standard integration”.
To that end, Ripple hired Brooks Entwistle, the former CEO of Uber, to help with these aforementioned expansion plans. Entwistle will lead operations in Southeast Asia as the decision to have him on board was finalized last week. Provided the acquisition itself gets the green light from the relevant regulatory authorities, Entwistle will most likely also sit next to the Malaysian company’s board of directors. Ripple’s Vice President of Product, Amir Sarhangi, will also join him.
Tranglo expands its influence as Garlinghouse promotes the line of credit service and ODL
Partnering with Ripple isn’t the first time Tranglo has decided to go beyond its country’s borders, as it successfully created new and improved payment channels with Ghana and Nigeria in February. Not only are Ghana and Nigeria the two largest recipients of remittances around the world, but Tranglo has also established payment channels with Brazil and Uganda.
In addition, Brad Garlinghouse, CEO of Ripple, emphasized the importance of customers being able to use both ODL and the line of credit service. He claimed that combining RippleNet with the APAC footprint generated by Tranglo would go a long way in providing this service.
In other news, Ripple had recently started granting RRPNet members XRP loans to fund worldwide payments.