Chad Steingraber, a well-known figure in the XRP community, recently brought attention to Tranglo, a partner of Ripple Payments (formerly ODL), and how they utilize XRP for real-time transactions. Steingraber shared this update to highlight Tranglo’s efforts in establishing real-time settlement systems in various countries through Ripple Payments, which makes use of XRP.
Tranglo’s payment process, which relies on Ripple’s solution for real-time settlement, involves just five steps. Firstly, the remittance licensee requests bulk pre-funding via RippleNet at Tranglo. Then, in the second step, the remittance source withdraws the requested amount in XRP from a digital wallet, specifically Ripple’s On-Demand Liquidity service. The third step involves sending the XRP to Tranglo’s Exchange account, where it is exchanged for fiat currency. In the fourth step, the licensee’s wallet in Tranglo’s system is credited with the requested amount for remittance payout. Lastly, Ripple issues an invoice to the licensee for payment.
It’s worth noting that Tranglo has been using Ripple’s ODL service for all its payment routes since March 2022. This move has allowed remittance providers to facilitate fast cross-border payments without the need for expensive pre-funding. Tranglo initially adopted Ripple’s ODL following a successful pilot deployment in September 2021, which processed 250,000 transactions totaling $48 million within the first 100 days.
Since partnering with Ripple, Tranglo has enabled small and medium enterprises to process $970 million in 2022 through Ripple’s ODL, marking a significant 1,729% increase from the $53 million processed earlier. Additionally, Tranglo’s transaction volume has seen substantial growth in recent years. While they processed $1.3 billion in 2018, this number reached $3.3 billion in 2022 thanks to the Ripple partnership. According to records on Tranglo’s official website, they have facilitated 46 million transactions with a total value of $11.81 billion.
Tranglo notably provides real-time settlement services for countries such as Singapore, Malaysia, and the Philippines.
In a subsequent update, Chad Steingraber suggested that XRP’s price has not been significantly impacted by these ODL payments because the transactions take place over-the-counter (OTC) rather than on public crypto exchanges. Other prominent community figures, like Panos Mekras, have also emphasized this view. Furthermore, Ripple has acknowledged that they designed ODL to have a demand-neutral effect on XRP.
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