In a recent revelation, Chad Steingraber, a notable figure within the XRP community, highlighted Tranglo’s adoption of XRP for real-time transactions through Ripple’s Payments solution. This strategic move by Tranglo aims to revolutionize cross-border payments by leveraging Ripple’s On-Demand Liquidity (ODL) service. The ODL service utilizes XRP as a bridge currency.
Ripple Partner Tranglo Leverages XRP For All Real-time Transfers
Tranglo’s payment process, as revealed by Steingraber, involves a meticulous five-step procedure. Initially, remittance licensees request bulk pre-funding via RippleNet at Tranglo. It is followed by drawing down the requested amount in XRP from Ripple’s do dedo wallet.
Subsequently, XRP is exchanged for fiat currency in Tranglo’s Exchange account. Thereafter, the licensee’s wallet is credited accordingly for remittance payout, culminating in Ripple issuing an invoice for payment.
The adoption of Ripple’s ODL service by Tranglo traces back to March 2022. It was preceded by a successful pilot deployment in September 2021. During the pilot phase, which processed 250,000 transactions totaling $48 million within the initial 100 days, the efficiency and scalability of Ripple’s solution were evidently demonstrated.
Since partnering with Ripple, Tranglo has witnessed exponential growth in transaction volumes. Moreover, small and medium enterprises processed a staggering $970 million in 2022 through Ripple’s ODL. This marks a remarkable 1,729% increase from previous levels. Furthermore, this surge underscores Ripple and XRP growing adoption.
Also Read: XRP Whales Move 287M Tokens, Will XRP Price Hit $0.60?
Does It Affect XRP Price?
Despite the significant volume of transactions facilitated by Tranglo through Ripple’s ODL service, questions linger regarding the potential impact on the XRP price. Steingraber addressed this concern and emphasized that the transactions primarily occur over-the-counter (OTC) rather than on public crypto exchanges.
He noted, “The reason #XRP price is not affected by today’s partnerships and ODL/Payments utility use described below: ALL use of #XRP globally today is essentially OTC trading that does not touch public crypto exchanges.”
Furthermore, Steingraber posited that significant price appreciation for XRP would stem from a complete depletion of the public supply, driven by increased demand from businesses reliant on XRP for transactions. He remarked, “The bottom line is that astronomical prices will come from a complete depletion of the public supply.”
Also Read: SEC vs. Ripple: Alderoty Sets Record Straight on Next Steps