In the latest news, Chad Steingraber, a well-known figure in the ripple community, has recently pointed out the fact that Tranglo has been using XRP to conduct real-time transactions through Ripple’s Payments solution. Tranglo’s decision to partner with Ripple represents a revolutionary step in cross-border payments using the latter’s On-Demand Liquidity (ODL) service. Meanwhile, the ODL service makes use of the XRP as a bridge currency.
Ripple Partner Tranglo Leverages XRP For All Real-time Transfers
Payments at Tranglo according to Steingraber are done through a methodical five steps process. RippleNet was used to apply for remittance licenses in bulk at the beginning. However, the first step is to draw down the requested amount from Ripple’s digital wallet and then re-enter the XRP amount into the transfer window. At the sametime, XRP is sold for fiat money in Tranglo Exchange account. After that, the credit is reflected in the wallet of the licensee and Ripple releases an invoice for payment.
In March 2022, Ripple’s ODL service was adopted by Tranglo as a transactional service. It was a follow-up to a successful demonstration, which took place in September 2021. In addition, the pilot project that dealt with 250,000 transactions worth $48 million during the first 100 days of its operation clearly showed that Ripple’s product was scalable and efficient.
The reason #XRP price is not affected by today’s partnerships and ODL/Payments utility use described below:
ALL use of #XRP globally today is essentially OTC trading that does not touch public crypto exchanges. Crypto exchanges currently today determine the price.
Traditional… https://t.co/fjZIj3tisH
— Chad Steingraber (@ChadSteingraber) April 17, 2024
Ripple partnership with Tranglo has led to a phenomenal growth in transaction volumes within a short time. Additionally, SMEs, which were a major force in the Ripple ecosystem, processed an astounding $970 million through the ODL in 2022. This is an outstanding jump of 1,729% from the past value. Similarly, this development points to the increasing scalability of Ripple and XRP.
Does It Affect The Price?
Although the ODL service from Ripple has an impressive daily volume of transactions that Ripple is facilitated by, questions remain as to the effect on the price of Ripple. However, they took this problem into consideration and explained that these transactions predominantly happen OTC, not on public crypto exchanges. He noted, “The reason #XRP price is not affected by today’s partnerships and ODL/Payments utility use described below: ALL XRP utilized nowadays trade bilaterally that do not link with the official crypto exchanges.
In addition to this, Steingraber claimed that serious price increase for XRP would be due to the full exhaustion of the public supply as a result of the increasing demand from businesses that use XRP for their transactions. Also, he added: “The short of it is that the astronomical prices will result from the complete exhaustion of public resources”.
