Ripple's remittance technology is expanding into the UAE as its investment partner, Tranglo, opens a new payment corridor to the United Arab Emirates.
UAE is now part of the Tranglo Connect network, offering instant payments to the second largest Arab economy. #Tranglo #Fintech #CrossBorderPayment #Remittance https://t.co/C8VUxVkn1Y pic.twitter.com/WNvysmoC38— Tranglo (@Tranglo) August 23, 2022
The Arab Gulf remains a key region for the cross-border payments industry, hence the significance of the move. As the second largest economy in the Arab Gulf, the UAE is one of the top senders and recipients of remittances globally.
Tranglo enabled Ripple's On-Demand Liquidity (ODL) service for all its payment corridors in March after the success of its test ODL deployment in September 2021, with 250,000 transactions totaling $48 million completed in the first 100 days.
Ripple's ODL solution that utilizes XRP enables users to instantaneously move money across borders with very low-cost settlement and without the need to keep prefunded capital in the destination market.
In 2021, Ripple acquired a 40% stake in Tranglo to scale RippleNet and the ODL service. Tranglo also proudly states its partnership with Ripple in all of its publications, stating that it offers "enhanced cross-border payout services with an even wider coverage through RippleNet, Ripple's global payment network."
Ripple's ODL gains ground
Ripple's ODL is gaining traction as more international businesses now use the service to facilitate payments. As reported by U.Today earlier in August, Ripple announced the launch of RippleNet's On-Demand Liquidity (ODL) in Brazil with Travelex Bank, the first bank in Latin America to utilize ODL.
In July, Ripple also partnered with Singapore-based Fomo Pay, a well-known payments company. Through the partnership, Fomo Pay hopes to increase its international treasury flows by utilizing Ripple's ODL.