Prominent XRP community figure Chad Steingraber recently raised awareness of how the Ripple Payments (formerly ODL) partner Tranglo uses XRP for real-time transactions.
Steingraber shared the update in line with Tranglo’s effort to facilitate real-time settlement systems across various countries using the Ripple Payments solution, which leverages XRP.
Tranglo // #Ripple Payments Process
Step 1 – Request From Tranglo to Ripple Payments
Step 2 – Draws down request amount of #XRP ODL
Step 3 – #XRP is sent to Tranglo’s Exchange account
Step 4 – Remittance Payout
Step 5 – Ripple Invoices for Payment https://t.co/yFDusgy7Ec pic.twitter.com/H4KAN5deA3— Chad Steingraber (@ChadSteingraber) April 16, 2024
Tranglo XRP-based Payment Process
Notably, Tranglo’s payment process, which uses Ripple’s solution for real-time settlement, involves just five steps.
The first step involves the remittance licensee requesting bulk pre-funding via RippleNet at Tranglo. Then, for the second step, the remittance source draws down the requested amount in XRP from a digital wallet, Ripple’s On-Demand Liquidity service.
In the third step, XRP is sent to Tranglo’s Exchange account and exchanged for fiat currency. Fourthly, the licensee’s wallet in Tranglo’s system is credited with the requested amount for remittance payout. Lastly, Ripple issues an invoice to the licensee for payment.
Notably, Tranglo’s adoption of Ripple’s ODL service across all its payment routes dates back to March 2022. This move enabled remittance providers to facilitate swift cross-border payments without the burden of expensive pre-funding.
Tranglo had acknowledged that it embraced Ripple’s ODL following the successful pilot deployment in September 2021. During the initial 100 days, the pilot processed 250,000 transactions totaling $48 million.
Following its partnership with Ripple, Tranglo allowed small and medium enterprises to process $970 million in 2022 through Ripple’s ODL. This figure represented a remarkable 1,729% increase from the $53 million Ripple’s ODL processed earlier.
Also, while Tranglo processed $1.3 billion in 2018, the figure ballooned within four years to $3.3 billion in 2022 amid the Ripple partnership. According to records on its official website, the Ripple partner has witnessed 46 million transactions with a total transaction value of $11.81 billion.
Tranglo notably facilitates real-time settlement for countries like Singapore, Malaysia, and the Philippines.
Impacts on XRP Price
In a subsequent update, Chad Steingraber suggested that XRP barely witnessed any price impact amid these ODL payments utility because the transactions occur over-the-counter (OTC) rather than public crypto exchanges.
Other prominent community figures, like Panos Mekras, have also emphasized this view. Besides, Ripple has acknowledged that it engineered ODL to have a demand-neutral effect on XRP.
