Tranglo, a global payment processing firm, has integrated Ripple’s On-Demand Liquidity (ODL) service into its operations to facilitate cross-border payments using XRP cryptocurrency. This service provides a direct gateway that bypasses the limitations of banking systems, resulting in more efficient and cost-effective transactions. Chad Steingraber, an active member of the XRP community, also recognizes the potential of XRP for instant settlements in various countries.
Tranglo began utilizing Ripple’s ODL in March 2022, following a successful pilot in September 2021. During the pilot phase, 250,000 transactions were completed with a total volume of $48 million. ODL has significantly improved Tranglo’s operations, making them more efficient and scalable. By the end of 2022, Tranglo had processed an impressive $970 million in payments through Ripple’s ODL, surpassing previous figures.
The workflow of Ripple’s ODL at Tranglo involves several streamlined steps that enhance the transaction process. Initially, the remittance licensee requests pre-funding from Tranglo through RippleNet in USD. Then, the transfer takes place, and the required amount of XRP is withdrawn from the individual’s digital wallet. Finally, the XRP is transferred to Tranglo’s travel money account, where it is exchanged for the local currency.
The process can be summarized as follows: the digital currency is exchanged, crediting the licensee’s wallet in Tranglo’s system with the equivalent fiat currency. Subsequently, the same amount of fiat currency is made available for payouts. Ultimately, Ripple invoices the licensee for the transaction. This five-step process ensures a speedy and secure settlement, enhancing Tranglo’s services in international payments.
Since partnering with XRP, Tranglo has experienced significant growth in transaction volumes and values. After processing $1.3 billion in 2018, the company has now reached $3.3 billion in 2022. In total, Tranglo handled 46 million transactions worth $11.81 billion by the end of the previous year. This growth demonstrates the effectiveness of Ripple’s ODL in improving Tranglo’s payment solutions.
Tranglo offers real-time settlement services to countries such as Singapore, Malaysia, and the Philippines. Despite the substantial number of transactions occurring through Ripple’s ODL, the price of XRP remains largely unaffected. This stability can be attributed to the fact that these transactions are over-the-counter-based, minimizing their impact on the market price of XRP. Ripple has ensured that its ODL implementation is demand-agnostic to XRP, safeguarding the cryptocurrency’s market dynamics.
By making Tranglo compliant with Ripple’s ODL module, a significant milestone has been achieved in cross-border financial transactions. Blockchain technology is increasingly recognized as a necessary tool for overcoming traditional obstacles in international finance.
