US-based tech company Ripple has acquired a 30 percent stake in Malaysia-based fintech startup Tranglo for an undisclosed amount, media reports said. The acquisition will help Ripple expand the reach of its On-Demand Liquidity (ODL) service. The startup’s network spans over 100 countries, 2,500 mobile operators, 1,300 banks or wallets, and 130,000 cash pickup points.
In a statement, Ripple said, “Southeast Asia’s payments landscape is highly fragmented. Each country comes with its own unique process and payments infrastructure – the lack of a standard integration for regional cross-border payments currently requires expensive workarounds.”
The deal is subject to regulatory approval and customary closing conditions and is expected to occur during this year. Once completed, Amir Sarhangi, VP of Product and Delivery at Ripple, and Brooks Entwistle will join Tranglo’s board of directors.
With regard to the stake purchase in Tranglo, Asheesh Birla, General Manager of RippleNet told the media, “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. 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.”
Recently, Ripple announced the appointment of a new managing director (MD) for Southeast Asia. Ripple has appointed Brooks Entwistle who has three decades of experience working with tech and fintech companies. Entwistle has previously worked with Goldman Sachs, where he was CEO, Singapore and chairman of Southeast Asia. As the MD of Ripple, he will drive digital assets and blockchain adoption in the region.