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Ripple partners with second-largest money transfer service MoneyGram Ripple partners with second-largest money transfer service MoneyGram

Ripple partners with second-largest money transfer service MoneyGram

Ripple announced a partnership with MoneyGram, the second-largest money transfer service in the world.

Ripple partners with second-largest money transfer service MoneyGram

Cover art/illustration via CryptoSlate

Ripple announced a partnership with MoneyGram, the second-largest money transfer service in the world. Under the agreement, Ripple would become MoneyGramโ€™s partner for cross-border payments and foreign exchange settlement using xRapid, the companyโ€™s XRP-powered settlement service.

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.

โ€œThis 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,โ€ said Brad Garlinghouse, CEO of Ripple.

The partnership will focus on Rippleโ€™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.

โ€œThrough Rippleโ€™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,โ€ said MoneyGram CEO Alex Holmes.

Unlike some of Rippleโ€™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.

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