Things are finally looking uphill for Ripple and its cryptocurrency XRP. The Ripple community and XRP had their share of hard times after the SEC filed a lawsuit against Ripple. However, the community finally witnessed a big win (that might be a huge point in favor of them) after Judge Analisa Torres of the Court for the Southern District of New York granted attorney John Deaton to file a motion to intervene in the ongoing case on behalf of a section of XRP holders. The motion to intervene must be filed by the 19th of April. Moreover, any opposition and response papers must be filed by the 3rd of May, as said by the court.
Celebration seems to have already started as Ripple expands its market in Southeast Asia. Ripple reported today its plan to buy a 40% stake in Tranglo, an Asian cross-border payments specialist, as part of its expansion of RippleNet’s On-Demand Liquidity (ODL) in Southeast Asia.
Ripple Expects to See Good Times Ahead
The grant to intervene will be a big opportunity for the XRP and Ripple community, and therefore, this is the right time to expand its facilities. Hence, the blockchain payments company is stepping up its efforts in Southeast Asia, announcing that it has agreed to buy a 40% stake in Tranglo, which is the region’s largest cross-border payment specialist.
Note that the SEC has previously argued against such motions to intervene with being approved by the court, so this move is big news for Deaton and several XRP advocates. The lawyers and the defendants in the case wrote to Judge Torres a few days ago, penning down the SEC’s opposing views and planned motion to interfere.
Ripple Labs stated, “Intervenors should be permitted to proceed with their motion to clarify.”
To oppose this, the SEC objected saying:
“If the Court permitted Movants to intervene, it would be logic-bound to allow all investors and interested members of the public with differing viewpoints to intervene in the underlying actions. Such an intervention would create an avalanche of claims and near-certainty of undue delay, complexity, and confusion.”
To the same, Deaton claimed that the SEC is misleading the court about the letter as it only makes him look bad. According to him, the agency’s response to the intervention was “the most misleading letter that I’ve ever read submitted to a Court.”
The @SEC_Enforcement letter to Judge Torres objecting to our motion to intervene is the most misleading letter that I’ve ever read submitted to a Court.
SEC Attorney Jorge Tenreiro wrote the following:
“Movants primary motivation appears to be to reinstate speculative
— John E Deaton (@JohnEDeaton1) March 29, 2021
Therefore, this verdict of the court in favor of the XRP community will bring good times for Ripple. The growing demand for cryptocurrencies and cross-border payments is a clear sign that the crypto is expected to see an upward trajectory soon. A surge in the price of XRP by 5% was witnessed right after Ripple announced the acquisition of a 40% stake in Tranglo. This is a vivid indication that the crypto is already regaining its momentum. The price of XRP stands at $0.5759, with a market cap of $26 billion, at the time of writing.
Ripple to Meet the Growing Demand of Cross-Border Payments
Ripple’s partnership with Tranglo will enable it to meet the region’s increasing demand for cross-border payments while also extending the scope of its ODL services. XRP uses ODL to serve as a bridge currency between two fiat currencies, allowing money to be sent instantly and reducing working capital needs.
The announcement by Ripple states, Tranglo will continue to support existing payments corridors in the area while also introducing new ODL corridors within its current network. The announcement came after Brooks Entwistle, a former executive at Goldman Sachs Group Inc. and Uber Technologies Inc., was named Ripple’s managing director of Southeast Asia. Asheesh Birla, general manager of RippleNet, said,
“Tranglo’s robust payments infrastructure […] makes them an ideal partner to support our expansion of On-Demand Liquidity starting with the Southeast Asia region. We are excited to continue and carry out our shared mission to transform cross-border transactions to be faster, cheaper, and more secure with blockchain technology and digital assets.”
Ripple’s proposed acquisition of a 40% stake in Tranglo is still awaiting official approval and customary closing conditions, however, it is expected to be finalized later this year. Amir Sarhangi, Ripple’s vice president of product and distribution, and Ripple’s managing director Brooks Entwistle will join Tranglo’s team of board of directors after the proposal is completed. Jacky Lee, CEO at Tranglo, said,
“By partnering closely with Ripple and introducing On-Demand Liquidity to new markets, we aim to further that ambition to provide accessible and equitable financial services to the masses.”
The collaboration between Ripple and Tranglo will see the two companies pool their resources to resolve Southeast Asia’s deep and diverse payments landscape, with each nation currently employing its own collection of policies and infrastructure.