- Ripple Labs has reportedly sold its stake in Tranglo, a Malaysia-based payment firm that utilizes XRP for cross-border transactions.
- This development, first highlighted by Crypto Eri on social media platform X, has caused considerable discussions within the crypto community.
- Crypto Eri noted, “Crunchbase updated Ripple investment exits. Bitstamp exit was probably due to the Robinhood acquisition, but surprised to see Tranglo, where Ripple held a 40% stake in the cross-border payment company that utilized XRP (ODL). Additional confirmation recommended.”
Ripple Labs divests its significant stake in Tranglo, sparking concerns and speculation among crypto enthusiasts.
Ripple’s Strategic Shift: Exiting Tranglo Investment
Ripple Labs’ exit from Tranglo, an important partner in using XRP for international transactions, marks a notable shift in its strategic approach. Ripple’s exit follows its divestment from Bitstamp, which aligns with Bitstamp’s recent acquisition by Robinhood. However, the decision to exit Tranglo has caught many by surprise, raising questions about the future of Ripple’s cross-border payment strategy.
Understanding the Context Behind Ripple’s Exit
Tranglo has been a cornerstone in Ripple’s efforts to facilitate global financial transactions through its On-Demand Liquidity (ODL) service, significantly reducing the cost and time of international transfers. With Ripple owning a 40% stake, the partnership was deeply embedded in using XRP across payment corridors. The divestment signifies a potential pivot in Ripple’s strategy or operational needs.
Community Reactions and Speculations
The XRP community has reacted with a mixture of confusion and speculation. Crypto Eri’s announcement has led to questions about the veracity of Crunchbase’s records. While some have shown concerns over potential errors, others, like Wrathof Kahneman, have pointed out the need for corroborating sources.
Potential Reasons and Future Implications
Further insights reveal that Seamless Group Inc., owning Tranglo, has been attempting to go public through a SPAC with Infint Corp since 2022. Although there have been delays, recent updates suggest the deal is ongoing. This potential move towards public trading might explain Ripple’s decision to divest from Tranglo.
Kahneman’s research also uncovered that TNG Fintech, rebranded as Seamless Group, had partnered with Ripple in 2021 before announcing a merger with Infint Acquisition Corporation. Due to this partnership’s complexities, it is speculated that Ripple’s exit could be part of a larger strategic or financial decision.
Conclusion
In conclusion, Ripple Labs’ divestment from Tranglo has generated a wave of reactions and speculations within the XRP community. While some view this as a strategic pivot by Ripple, potentially aligning with broader goals, others express concerns over potential impacts on XRP’s usage. Regardless, this divestment highlights Ripple’s dynamic approach to navigating the evolving landscape of international finance.
