Ripple partners with second-largest money transfer service MoneyGram
Ripple announced a partnership with MoneyGram, the second-largest money transfer service in the world. Under the agreement, Ripple would become MoneyGram’s partner for cross-border payments and foreign exchange settlement using xRapid, the company’s XRP-powered settlement service.
An industry defining milestone: together, @MoneyGram and @Ripple are solving the challenges with cross-border payments using the speed and efficiency of #XRP. https://t.co/xIfeJJgSy7
— Brad Garlinghouse (@bgarlinghouse) June 17, 2019
As part of the agreement, Ripple agreed to provide a $50 million capital commitment to MoneyGram, enabling Ripple to spend up to $50 million in exchange for equity in MoneyGram over a two-year period.
“This is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies,” said Brad Garlinghouse, CEO of Ripple.
The partnership will focus on Ripple’s xRapid, a solution for providing on-demand liquidity. The service reduces the reliance on pre-funded nostro accounts, enabling instant currency settlement in a destination currency using XRP as an intermediary.
“Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management,” said MoneyGram CEO Alex Holmes.
Unlike some of Ripple’s other services, xRapid leverages XRP and may have an appreciable impact on the price of the asset in the long-term.
XRP surged 6.28 percent in response to the news.
At the time of press, XRP is ranked #3 by market cap and the XRP price is up 4.72% over the past 24 hours. XRP has a market capitalization of $19.09 billion with a 24-hour trading volume of $2.06 billion. Learn more ›
XRP7 Nov at 2:23 am UTC
At the time of press, the global cryptocurrency market is valued at at $288.61 billion with a 24-hour volume of $52.63 billion. Bitcoin dominance is currently at 57.19%. Learn more ›