Tranglo boosts payment efficiency using Ripple’s ODL

Tranglo, a leading global payment processor, has successfully integrated Ripple’s On-Demand Liquidity (ODL) service, utilizing the cryptocurrency XRP to optimize cross-border payment processes. This strategic move has allowed Tranglo to circumvent traditional banking inefficiencies, providing a swift and cost-effective transactional flow. Chad Steingraber, an active member of the XRP community, highlighted the instant settlement capabilities that XRP facilitates across different countries.

Tranglo’s journey with Ripple’s ODL began with a pilot in September 2021, which processed 250,000 transactions amounting to $48 million. Following the pilot’s success, the company fully adopted the technology in March 2022. By the end of the year, Tranglo had processed nearly $970 million in payments via Ripple’s ODL, demonstrating significant growth and the effectiveness of the solution in enhancing transactional capacities.

How Ripple’s ODL works within Tranglo

The ODL process at Tranglo begins with the remittance licensee depositing USD into RippleNet. The corresponding amount of XRP is then withdrawn from the digital wallet and sent to Tranglo’s travel money account, where it is exchanged for the required local currency. This conversion process allows for immediate crediting of the equivalent fiat currency into the licensee’s wallet, enabling prompt payouts. Ripple then bills the licensee for each transaction. This streamlined, five-step process greatly enhances the speed and security of cross-border settlements.

Since integrating Ripple’s ODL, Tranglo has seen a dramatic increase in both transaction volumes and value. From processing $1.3 billion in 2018, the company’s transaction value soared to $3.3 billion in 2022. At the year’s end, Tranglo reported handling 46 million transactions worth a total of $11.81 billion. This growth underscores the efficiency of Ripple’s ODL in revolutionizing payment solutions.

Stability in XRP despite high transaction volumes

Despite the high volume of transactions facilitated through Ripple’s ODL, the market price of XRP remains largely unaffected. This stability is due to the transactions being executed over-the-counter, minimizing their impact on the open market. Ripple has designed ODL to be demand-agnostic regarding XRP, ensuring that its deployment does not adversely affect the cryptocurrency’s market dynamics.

Incorporating Ripple’s ODL has marked a significant milestone for Tranglo, setting a new standard in the realm of financial technology and demonstrating blockchain’s potential to surmount traditional barriers in international finance.

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