Ripple’s XRP powers all Tranglo real-time transactions

A global payment processing firm, Tranglo, has incorporated Ripple’s On-Demand Liquidity (ODL) service into its operations to settle cross-border payments using the cryptocurrency XRP. This service creates a direct gateway to bypass the weaknesses of banking systems and helps in the execution of more efficient and low-cost transactions. Chad Steingraber, a very active member of the XRP community, also mentioned the potential that XRP offers in terms of instantaneous settlements in different countries.

Tranglo began using Ripple’s ODL in March 2022, after a pilot in September 2021 that was deemed successful. In the pilot phase, 250,000 transactions were completed with a volume of 48 million dollars. ODL has made Tranglo’s operations more efficient and scalable. By the end of 2022, Tranglo registered a staggering $970 million in payments through Ripple’s ODL, way above the earlier numbers.

Workflow of Ripple’s ODL at Tranglo in full details

The Ripple’s ODL transaction, starting from the titling, extends to the humanizing of the process through a series of streamlined steps. In the beginning, the remittance licensee seeks Tranglo’s pre-funding through RippleNet to deploy USD. Thereafter, the transfer operates, and the needed XRP amount is withdrawn from one’s digital wallet. The XRP finally goes to the travel money account of Tranglo, which is the one that exchanges it for the necessary local currency.

The steps in the process are as follows: the amount of digital currency is exchanged, and the licensee’s wallet in Tranglo’s system, which is equivalent to the fiat currency, is credited finally, the equal amount of the fiat currency in licensee’s wallet system is made available for payouts. Ultimately, Ripple bills the lisensee for the transaction in question. The case is a compact five-step process, which is very beneficial to a speedy and secure settlement process, so it enriches the company’s services in the international payment field.

Growth and development of transaction volumes

Tranglo has grown significantly in transaction volumes and values after partnering with XRP. After processing $1.3 billion in 2018, the company said it is processing $3.3 billion in 2022. The aggregate transactions handled by Tranglo at the end of last year stood at 46 million, worth a sum of $11.81 billion. This growth highlights how effective Ripple’s ODL is in improving Tranglo’s payment solutions.

Tranglo enables countries such as Singapore, Malaysia, and the Philippines to utilize its real-time settlement services. Although the number of transactions that take place through Ripple’s ODL is considerable, the price of XRP is largely undisturbed. Such stability is attributable to the fact that the said transactions are over-the-counter-based and thus their effect on the market price of XRP. Ripple has made the ODL demand-agnostic the XRP, therefore making sure that its implementation does not harm the cryptocurrency’s market dynamics.

Therefore, Making Tranglo compliant with Ripple’s ODL module is a major breakthrough in cross-border financial transactions, and blockchain technology is becoming an acceptable prerequisite for overcoming the traditional obstacles in international finance.