MoneyGram Money Transfer Service Gets Investment from Ripple to Boost XRP Adoption
MoneyGram will use Ripple’s On-Demand Liquidity (ODL) solution in Australia, Europe and other important markets.
The US-based and blockchain company Ripple made a $20 million investment in the money transfer giant MoneyGram, announces a Ripple press release. This means Ripple owns a 15% stake that includes non-voting warrants in MoneyGram. This is what the CEO and Chairman of MoneyGram Alex Holmes had to say about the collaboration:
“Our partnership with Ripple is transformative for both the traditional money transfer and digital asset industry – for the first time ever, we're settling currencies in seconds. This initial success encourages us to expedite expanding our use of On-Demand Liquidity.”
Both Parties Involved Are Sure to Win
Ripple started collaborating with MoneyGram back in 2018 when MoneyGram begun running its pilot program for testing the digital token XRP in order to reduce money transfer costs. In June 2019, the cryptocurrency giant Ripple bought $30 million worth of shares at MoneyGram and signed a 2-year partnership that requires the money transfer company to use XRP when making cross-border payments. When this happened, Garlinghouse said the deal is a crucial milestone in the cryptocurrency space because it helps Ripple prove how efficient the blockchain technology is, while MoneyGram is allowed to remain profitable in times of struggle.
New XRP Markets
The Ripple MoneyGram partnership has proven to be a success, seeing that now Ripple’s ODL solution is processing 10% of the MXN-USD Moneygram transactions. The liquidity index for XRP has gone over the Mexican exchange Bitso’s 6 million mark. With this new investment, MoneyGram will continue expanding to European and Australian markets and the adoption of XRP will be boosted. On November 23, XRP surpassed other major coins and set a new high for the daily transaction volume.