MoneyGram Is Using XRP In Cross-Border Settlements, Reveals Q2 Report
- Ripple and MoneyGram established a partnership on June 17th, 2019.
- The new partnership is expected to help with working capital needs, while improving profits.
MoneyGram has long been one of the largest money transfer companies in the world, so why wouldn’t they take an opportunity to partner with Ripple? Their collaboration just began on June 17th, and the entire XRP community has been abuzz, gossiping over if XRP would be included in the new partnership. To settle any confusion, MoneyGram’s Q2 report reveals that the suspicions are a reality.
More specifically, the report states,
“The commercial agreement allows MoneyGram to utilize Ripple’s xRapid blockchain product, as well as XRP, Ripple’s cryptocurrency, to facilitate cross-border settlement.”
Ultimately, the company believes that the partnership will make it possible to reduce their working capital needs, while bringing in new earnings.
The cryptocurrency community has welcomed the new collaboration with open arms, as has MoneyGram.
MoneyGram announced that they're using XRapid and XRP worldwide! XRP bout to blow!!!#XRPadoption
— MAGIC (@MagicPoopCannon) August 2, 2019
Alex Holmes, the CEO of MoneyGram, even called the partnership a “perfect marriage” that would ultimately speed up different processes in the firm. Ripple needs more companies on board with their network, which is where MoneyGram comes in. However, by partnering with Ripple, MoneyGram also makes Ripple into an ally, rather than an enemy, in the payment remittance sector.
As a result of the commercial agreement, Ripple purchased $50 million worth of MoneyGram shares, which are presently priced at $4.10 per share. The agreement states that MoneyGram has the option of selling $20 million more in equity to Ripple between now and June 30th, 2020.
The Global Remittance Market Report shows that MoneyGram International Inc., among others, will play a big role in the rapid growth of the remittance market in the next five years. Involving Ripple in this advancement can only lead to positive outcomes for all parties involved. To view the full report and forecast, visit here.
At the time of writing, Ripple’s native token (XRP) was valued at $0.311004, losing 1.71% in value through the last 24 hours. However, XRP still has a $13.33 billion market cap.