Ripple And Long-Term Partner Tranglo Break Up, What Happened?

As a seasoned researcher with extensive experience in the cryptocurrency market and specifically XRP, I find this recent development between Ripple Labs and Tranglo intriguing. The divestment of Ripple’s stake in Tranglo is surprising given their strong partnership and integration of XRP through On-Demand Liquidity (ODL).

According to reports, Ripple Labs has recently sold off its ownership in Tranglo, a Malaysian payment company that utilizes XRP for cross-border transactions. This revelation was initially shared by Crypto Eri, a well-known figure within the XRP community, through a post on her XRP-focused platform on Monday. The information was sourced from Crunchbase updates.

Why Are Ripple And Tranglo Parting Ways?

According to the most recent data from Crunchbase, Ripple has recently sold its stakes in both Bitstamp and Tranglo. The sale of Ripple’s shares in Bitstamp seems consistent with Bitstamp’s acquisition by Robinhood. However, Ripple’s decision to part ways with Tranglo came as a surprise.

Tranglo plays a crucial role in Ripple’s plan to improve cross-border financial transactions with the help of XRP. By utilizing On-Demand Liquidity (ODL) from Tranglo, transactions become faster and more cost-effective. Ripple’s significant investment, representing 40% ownership, reflects a strong dedication to incorporating XRP into international payment systems.

Crypto Eri announced that Crunchbase had revised Ripple’s investment records. The exit of Bitstamp was likely due to Robinhood’s acquisition, but she was taken aback by the departure of Tranglo, in which Ripple owned a 40% stake and employed XRP for cross-border transactions (ODL). It would be beneficial to have further confirmation.

Within the XRP community, this surprising development has sparked debate and raised concerns. @ADingoAteMyXRP identified an apparent inconsistency, stating, “Crunchbase lists exits as companies that have gone public. However, Tranglo is a private firm. This discrepancy requires clarification.” Additionally, WrathofKahneman, a well-known researcher in the XRP community, expressed confusion, mentioning, “It’s peculiar that Crunchbase is the only source reporting this information. I question if it might be an error?”

Exploring the intricacies of the situation, Crypto Eri went into greater detail, stating that Seamless Group Inc. is the parent company of Tranglo. The company has attempted to go public through a Special Purpose Acquisition Company (SPAC) named Infint Corp since 2022. However, this process has encountered numerous delays and setbacks. In April 2024, Infint filed an updated S-1 form, which mentions Tranglo 712 times and Ripple 256 times. The specific transaction details have yet to be finalized. Additionally, Cowen, a strategic partner to Polysign/Standard, sold its 10% stake in Infint Corp. This matter requires further investigation.

New discoveries from Kahneman’s further investigations unveiled that TNG Fintech, now called Seamless Group, formed a partnership with Ripple in the year 2021. Later on, they announced their merger with InFinT Acquisition Corporation to go public. Initially, it appeared as if the paperwork had expired, but recent extensions suggest that the transaction may not have been finalized yet. This possibility could be the reason behind their decision to sell off their shares.

“Ripple may have sold their stake in Tranglo based on the available documentation about an ex-employee who rejoined Ripple. This could potentially impact XRP, but it’s important to note that Tranglo remains a significant user of Ripple Payments. The investment might boost Tranglo’s growth and thereby increase XRP usage as well.”

Among XRP community members, opinions on this recent development are varied. Some, such as @HadleyHopelv426, consider it a disappointing setback from Brad Garlinghouse and his team. Contrarily, others like Kahneman view the potential financial benefits for the company as a catalyst for increased usage and expansion of XRP.