XRP (XRP) is trading up 3.18% at $0.58 at press time on Monday after its related company – Ripple Labs Inc – said it had acquired a stake in a cross-border payments company in Malaysia.
What happened: On Monday, Ripple said it had acquired a 40% stake in Tranglo, which would allow it to “meet the growing customer demand in the region.”
The partnership will allow Ripple to expand its On Demand Liquidity (ODL), which uses XRP to send funds instantly. The company claims that this reduces the need for working capital.
“Tranglo will play an important role in supporting existing corridors, such as the Philippines, and introducing new ODL corridors within its existing network,” Ripple said.
why does it matter: Bloomberg reports that Tranglo has processed more than 20 million transactions totaling $4 billion since its inception.
This announcement comes a week after former Brooks Entwistle Goldman Sachs Group Inc. (NYSE: GS) and Uber Technologies Inc (NYSE: UBER) CEO has become the managing director of Ripple’s Southeast Asia operations.
XRP is up 159.70%, outperforming the yields of the major cryptocurrency Bitcoin (BTC) this year so far, up 96.65% in the same period.
XRP’s rise comes despite the fact that the company is facing a lawsuit from the US Securities and Exchange Commission, the US market regulator, over allegations that Ripple made an unregistered offer of $1.3 billion in securities.
In December, Coinbase delivered a jolt to XRP when it removed the coin from its platform.
When faced with a lawsuit, Ripple claimed that BTC and Ethereum (ETH) has been subject to Chinese control because it is subject to the simple majority rule. The statement garnered some backlash from ETH co-founder Vitalik Buterin.
BTC is trading 4.02% higher at $57827.05 at the time of writing, while ETH is trading 6.41% higher at $1809.74.
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