Ripple’s latest move has sent shockwaves through the crypto community. The company, renowned for its role in transforming cross-border transactions with XRP, has reportedly sold its 40% stake in Tranglo, a Malaysian payment firm pivotal in using XRP for international transactions.
This surprising development, first spotlighted by Crypto Eri on X, has ignited a fervent debate within the XRP community.
Crypto Eri recently drew attention to an update on Crunchbase indicating Ripple’s exit from both Bitstamp and Tranglo. While Ripple’s withdrawal from Bitstamp can be attributed to the exchange’s acquisition by Robinhood, the reasons behind the Tranglo exit remain ambiguous. Tranglo was a crucial ally for Ripple, instrumental in facilitating cross-border payments using XRP.
The XRP community has been divided in its response to this news. Some users have criticized Eri’s post, alleging it to be a deliberate attempt to sow discord and damage Ripple and Tranglo’s reputations. However, critics argue that Crunchbase’s “exits” typically refer to public listings, which does not apply to Tranglo as it remains a private entity. This discrepancy raises concerns about the accuracy and reliability of the information on Crunchbase.
Crypto Eri has clarified that Tranglo is owned by Seamless Group Inc., which has been pursuing a public listing through a Special Purpose Acquisition Corporation (SPAC) named INFINT Corp. Since 2022, INFINT has been working towards finalizing this public listing. Eri also highlighted that Cowen, a partner of Polysign, sold its stake in INFINT Corp., adding another layer of uncertainty regarding Ripple’s exit from Tranglo.
Ripple acquired a 40% stake in Tranglo in 2021 as part of its strategy to expand RippleNet and its On-Demand Liquidity (ODL) service, now rebranded as Ripple Payments. This partnership was crucial in integrating XRP into Tranglo’s payment routes, leading to a substantial increase in transaction volumes. In 2022, Tranglo processed $970 million through Ripple’s ODL service, a significant leap from $53 million in the previous period.
As of now, Ripple has not provided any official statement regarding the reasons behind its exit from Tranglo. The crypto community is left speculating about the implications for the partnership and the future direction of Ripple’s strategy and XRP’s role in cross-border payments.
Ripple’s sale of its Tranglo stake underscores the evolving nature of cryptocurrency partnerships and investments. While the motivations behind this decision remain unclear, it reflects ongoing changes and challenges within the crypto industry. Investors and observers will need to stay tuned for more information from Ripple and updates on Tranglo’s future.
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