Ripple partner Tranglo has reported an impressive trajectory in its service metrics from 2021 to 2023, registering a net rise in the usage of the $XRP-powered solution On-Demand Liquidity (ODL).
According to Singaporean news outlet The Edge, Tranglo saw its net ODL transaction volume surge from a modest $53 million in 2021 to a staggering $970 million the following year, marking a 1,700% uptick.
This robust growth has provided a boost to small and medium-sized enterprises both within the region and internationally. Jacky Lee, the CEO of Tranglo, was quoted saying the use of ODL unlocked new cash flow opportunities for small businesses.
For example, cash flow is one of the biggest challenges SMEs face when expanding quickly. To solve that, we work with Ripple, the leading enterprise blockchain and crypto solutions provider, to extend credit facilities via its On-Demand Liquidity (ODL) service. This helps our partners to free up working capital and grow.
In 2022 alone, Tranglo’s transfers amounted to over $3.3 billion and in the first half of the year, the firm saw ODL transactions surpassing $2 billion. The company boasts that 80% of these transactions were concluded in real-time without any latency, with Tranglo’s cross-border payments technology seeing a 99.982% uptime in the process.
It’s worth noting that ODL is part of Ripple’s RippleNet offering, which includes “connections to hundreds of financial institutions around the world via a single API” to make moving money ”faster, cheaper and more reliable.” The ODL solution leverages the $XRP token to “source liquidity during cross-border transactions, as an alternative to traditional systems.”
It’s unclear how much of the processed volume has been influenced by the cryptocurrency, which currently has a market capitalization of $27 billion according to CryptoCompare data.
The XRP Ledger had nevertheless been seeing new developments and could soon see its transaction throughput surge from around 1,500 transactions per second to an impressive 3,400 transactions per second (TPS), bolstered by upgrades that are soon set to be deployed.
As CryptoGlobe reported, XRP token holders could soon start being able to earn income on-chain after the highly-anticipated XLS-30d amendment is launched, which is set to would introduce a built-in automated market maker (AMM) trading platform into the ledger.
An AMM is a platform that allows for cryptocurrency trading in a permissionless way using liquidity pools, rather than traditional order books. Liquidity pools are shared pools of two or more tokens supplied by users that are used for trades. The prices of tokens within the pool are determined through the use of blockchain oracles.
Investors who add tokens to liquidity pools receive a share of the fees collected from each trade, but the revenue comes with the risk of impermanent loss.
Featured image via Pixabay.