Crypto network Ripple gets a foothold in Asia with its 40% stake in cross-border payment firm Tranglo

2021 03 23T153223Z_1_LYNXMPEH2M171_RTROPTP_4_FIDELITY CRYPTOCURRENCY.JPG
Bitcoin’s meteoric rise has boosted crypto hedge funds

  • Ripple is set to take 40% stakes of Tranglo, a global cross-border payment hub focused on APAC markets.
  • This will support rising customer demand in Asia and RippleNet’s On-Demand Liquidity service according to Ripple’s statement.
  • Initially, new payment corridors will be set up in Southeast Asia and On-Demand Liquidity will become available in the Philippines.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Crypto network Ripple Labs said on Tuesday it will acquire a 40% stake in cross-border payment hub Tranglo in an effort to strengthen its market presence in the Asia-Pacific region.

Tranglo’s infrastructure will support existing payment corridors, as well as enable RippleNet customers in additional countries to use the firm’s On-Demand Liquidity service. “RippleNet customers using ODL will also be able to leverage Ripple’s Line of Credit to free up working capital and scale cross-border payments into more markets than ever before” the company said in a statement.

Cross-border payment processing firm Tranglo will support the expansion of the offer in Southeast Asia, starting with the Philippines and then rolling out to other countries, the company said, adding it also offers credit lines to users.

RippleNet uses blockchain technology to make cross-border transactions easier. The XRP token, which runs on Ripple’s network, is one of the most widely traded, alongside bitcoin and Ethereum’s ether.

The digital asset market has been gaining momentum in Asia, despite India’s recent ban on bitcoin. Over 30% of cryptocurrency transactions between mid 2019 and mid 2020 took place in Asia, according to a Chainalysis report.

“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.” Asheesh Birla, general manager of RippleNet, said.

Ripple is currently dealing with legal issues in the US due to its use of the XRP token. The Securities and Exchange Commission said the company had raised $1.3 billion worth of unregistered securities in the form of XRP, which the regulator believes is a security and not a cryptocurrency. Ripple has repeatedly disagreed.

This story has been corrected to reflect that Ripple does not operate or control XRP.

Read the original article on Business Insider

Ripple faces a SEC lawsuit for breaking investor-protection laws when selling its XRP cryptocurrency

In this photo illustration of the ripple cryptocurrency 'altcoin' sits arranged for a photograph on April 25, 2018 in London, England. Cryptocurrency markets began to recover this month following a massive crash during the first quarter of 2018, seeing more than $550 billion wiped from the total market capitalisation. (Photo by )

  • Ripple plans to defend itself against an expected SEC lawsuit over allegedly breaking investor-protection laws while selling its cryptocurrency, XRP.
  • In a series of tweets, Ripple CEO Brad Garlinghouse blasted the SEC’s decision to sue his firm right before the holidays.
  • “Ripple has and will continue to use XRP because it is the best digital asset for payments – speed, cost, scalability and energy efficiency,” he said.
  • The lawsuit would come after years of debate about whether XRP is a security, or a cryptocurrency outside regulatory scope.
  • Visit Business Insider’s homepage for more stories.

Cryptocurrency firm Ripple is facing a lawsuit by the Securities and Exchange Commission for allegedly violating investor-protection laws by selling its XRP token, a security the regulator considers as unlicensed.

Ripple’s CEO Brad Garlinghouse tweeted that the SEC is unjustifiably attacking crypto and blasted chairman Jay Clayton’s decision to sue his firm right before the holidays.

“Jay Clayton is taking notes from the Grinch this holiday season, leaving the actual legal work to the next administration,” Garlinghouse said, referring to the chairman’s departure at the end of Trump’s presidential tenure. 

The lawsuit hasn’t been filed yet, but Ripple is aware of the regulator’s impending action. The fact that the crypto firm disclosed that it’s about to be sued is uncommon, highlighting its intention to defend itself against legal action.

“We know crypto and blockchain technologies aren’t going anywhere,” Garlinghouse said. “Ripple has and will continue to use XRP because it is the best digital asset for payments – speed, cost, scalability and energy efficiency. It’s traded on 200+ exchanges globally and will continue to thrive.”

Read More: Investing veteran Barry Norris is beating 95% of his peers by betting against the market’s riskiest companies. He warns investors against the ‘siren call’ to own value stocks – and explains why he’s now bearish on Rolls-Royce.

Garlinghouse went on to say that the regulator isn’t in line with the rest of the US government, and shouldn’t limit innovation especially if its decision “directly benefits China.”

Over the past years, the SEC has filed, and mostly won, civil lawsuits against startups that breached securities laws when raising money via cryptocurrency sales. But none of those firms are as big as Ripple. XRP’s current market cap stands at about $22 billion, and it is the third-largest cryptocurrency after Bitcoin and Ethereum, according to data from Coin Gecko.

The lawsuit would come after years of debate between both sides about whether XRP is a security, or a currency that exists beyond the SEC’s scope of regulation.

The SEC did not immediately respond to Business Insider’s request for comment.

Read More: Bank of America unveils its top stock pick in each of the 11 S&P 500 sectors and explains why they’re poised to dominate in the year ahead

Read the original article on Business Insider