Chad Steingraber, a well-known member of the XRP community, recently brought attention to how Tranglo, a partner of Ripple Payments (formerly ODL), utilizes XRP for real-time transactions. Steingraber shared this information to highlight Tranglo’s efforts in facilitating real-time settlement systems in various countries through Ripple Payments and XRP.
Tranglo’s payment process, which relies on Ripple’s solution for real-time settlement, consists of five steps. The first step involves the remittance licensee requesting bulk pre-funding via RippleNet at Tranglo. In the second step, the remittance source withdraws the requested amount in XRP from a digital wallet provided by 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. Finally, Ripple issues an invoice to the licensee for payment.
It is worth noting that Tranglo has been using Ripple’s ODL service across 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 after 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. This marks a significant increase of 1,729% compared to the $53 million processed earlier. Additionally, Tranglo’s total transaction volume has grown from $1.3 billion in 2018 to $3.3 billion in 2022 due to its partnership with Ripple. The company has recorded 46 million transactions with a total value of $11.81 billion on its official website.
Tranglo is known for providing real-time settlement services to countries such as Singapore, Malaysia, and the Philippines.
Chad Steingraber also noted that the use of ODL payments has had minimal impact on the price of XRP, as these transactions occur over-the-counter (OTC) rather than public crypto exchanges. This view has been supported by other prominent community figures, including Panos Mekras. Ripple has also confirmed that it designed ODL to have a demand-neutral effect on XRP.
Please note that this content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.
