A recent update from prominent XRP community member Chad Steingraber highlights Tranglo’s use of XRP via RippleNet to facilitate real-time settlement across its payment routes.
Tranglo’s payment process, facilitated by RippleNet’s ODL solution, streamlines cross-border transactions for remittance providers by eliminating the need for large pre-funding deposits. This five-step process fosters efficiency and cost-effectiveness.
The process begins with a remittance licensee requesting bulk pre-funding through RippleNet at Tranglo. The remittance source then uses Ripple’s ODL service to withdraw the requested amount in XRP from a digital wallet.
Once acquired, the XRP is transferred to Tranglo’s designated exchange account and converted into the appropriate fiat currency. Following the conversion, Tranglo credits the licensee’s wallet within their system with the requested amount designated for remittance payout. Finally, Ripple issues an invoice to the licensee for settlement.
Tranglo (#Ripple Payments) is connecting Malaysia and Singapore in real-time settlement with #XRP as the settlement mechanism. #QR
The main two banks are Citi and HSBC. Other notable banks include JPMorgan, DBS, Standard Chartered, Bank of India and Bank of China (#BRICS+) https://t.co/l9EpPgbIEV pic.twitter.com/uVvwe1wXh1
— Chad Steingraber (@ChadSteingraber) April 16, 2024
Successful Implementation of RippleNet ODL by Tranglo
In March 2022, Times tabloid reported Tranglo’s adoption of RippleNet ODL across all its payment corridors. This strategic move empowered remittance providers to offer swift cross-border payments at a reduced cost, eliminating the need for substantial pre-funding that often hinders transaction speed.
The success of this integration is evident. Following a fruitful pilot program launched in September 2021, Tranglo officially embraced RippleNet ODL. The pilot program processed a remarkable 250,000 transactions totaling a staggering $48 million within its initial 100 days.
This partnership has yielded impressive results. In 2022, Tranglo facilitated the processing of $970 million for small and medium-sized enterprises (SMEs) through RippleNet ODL. This figure represents a significant 1,729% increase compared to the $53 million processed by RippleNet ODL before the partnership.
Furthermore, Tranglo’s overall transaction volume has witnessed significant growth. In 2018, the company processed $1.3 billion. By 2022, this figure had more than tripled to $3.3 billion, coinciding with the implementation of RippleNet ODL.
As per Tranglo’s official website, the company has facilitated a total of 46 million transactions with a cumulative transaction value exceeding $11.81 billion. Notably, Tranglo currently provides real-time settlement solutions for countries including Singapore, Malaysia, and the Philippines.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Impact on XRP Price: A Consideration
In a separate update, Steingraber acknowledged that the over-the-counter (OTC) nature of these ODL payments likely minimizes their direct impact on the market price of XRP. Public cryptocurrency exchanges, where most retail trading occurs, wouldn’t necessarily reflect the volume associated with these transactions.
This sentiment aligns with the views expressed by other prominent figures within the XRP community, such as Panos Mekras. Additionally, Ripple has publicly stated that it designs ODL to minimize any demand-driven influence on XRP’s price.
A Promising Partnership for the Future of Cross-Border Payments
The collaboration between Tranglo and RippleNet demonstrates the potential of XRP and blockchain technology to revolutionize the cross-border payments landscape. By offering a streamlined, cost-effective, and real-time settlement solution, this partnership empowers remittance providers and facilitates international transactions for businesses of all sizes.
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