Ripple Partner Tranglo Leverages XRP for All Payments: Analyzing the Impact on XRP Price

In a recent revelation, Chad Steingraber, a notable figure within the XRP community, highlighted Tranglo’s adoption of XRP for real-time transactions through Ripple’s Payments solution. This strategic move by Tranglo aims to revolutionize cross-border payments by leveraging Ripple’s On-Demand Liquidity (ODL) service. The ODL service utilizes XRP as a bridge currency, enabling seamless and efficient money transfers.

Tranglo’s Implementation of XRP in Payment Processes

Tranglo’s payment process involves a meticulous five-step procedure. Initially, remittance licensees request bulk pre-funding via RippleNet at Tranglo. This is followed by drawing down the requested amount in XRP from Ripple’s digital wallet. Subsequently, XRP is exchanged for fiat currency in Tranglo’s Exchange account. Thereafter, the licensee’s wallet is credited accordingly for remittance payout, culminating in Ripple issuing an invoice for payment.

Historical Context and Partnership Growth

Tranglo’s adoption of Ripple’s ODL service traces back to March 2022, following a successful pilot deployment in September 2021. During the pilot phase, which processed 250,000 transactions totaling $48 million within the initial 100 days, the efficiency and scalability of Ripple’s solution were evidently demonstrated. Since partnering with Ripple, Tranglo has witnessed exponential growth in transaction volumes. Small and medium enterprises processed a staggering $970 million in 2022 through Ripple’s ODL, marking a remarkable 1,729% increase from previous levels.

Market Impact and Price Dynamics

Despite the significant volume of transactions facilitated by Tranglo through Ripple’s ODL service, questions linger regarding the potential impact on XRP’s price. Steingraber addressed this concern and emphasized that the transactions primarily occur over-the-counter (OTC) rather than 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 use of XRP globally today is essentially OTC trading that does not touch public crypto exchanges.”

Factors Influencing XRP Price

Steingraber posited that significant price appreciation for XRP would stem from a complete depletion of the public supply, driven by increased demand from businesses reliant on XRP for transactions. He remarked, “The bottom line is that astronomical prices will come from a complete depletion of the public supply.” This perspective underscores the notion that while current utility and adoption are positive indicators, substantial price movements require broader market dynamics and demand pressures.

Technical Analysis and Future Projections

The recent adoption of XRP by Tranglo, despite its minimal immediate impact on XRP’s price, highlights the growing utility of XRP in real-world financial applications. Technical analysts suggest that long-term price movements for XRP will likely be influenced by broader market trends, regulatory developments, and the continued expansion of Ripple’s partnerships.

Community and Ecosystem Reactions

The XRP community has responded positively to Tranglo’s adoption of XRP for all payments. This move is seen as a validation of Ripple’s technology and its potential to revolutionize cross-border payments. Community members are optimistic about the long-term prospects of XRP, despite the current price stagnation.

Regulatory Landscape and Future Implications

The regulatory environment for cryptocurrencies continues to evolve, with significant implications for XRP and its adoption. As Ripple navigates ongoing legal challenges and seeks to expand its global footprint, the successful implementation of ODL by partners like Tranglo serves as a critical test case for the technology’s viability and regulatory compliance.

Conclusion

Tranglo’s strategic use of XRP for all real-time payments through Ripple’s ODL service marks a significant milestone in the adoption of blockchain technology for cross-border transactions. While the immediate impact on XRP’s price is limited, the long-term implications for XRP’s utility and market position are substantial. As the ecosystem continues to grow and regulatory clarity improves, XRP is well-positioned to play a crucial role in the future of digital payments.