Ripple have agreed to purchase shares and warrants in global remittance provider MoneyGram as part of a deal that will see Ripple’s xRapid liquidity solution being implemented across the MoneyGram network.
In a strategic partnership, Ripple will become @MoneyGram‘s global partner for cross-border payment and foreign exchange settlement, using XRP. https://t.co/4YlnFWy1ha https://t.co/aJnchpzj5k pic.twitter.com/cyald9sikr
— Ripple (@Ripple) June 17, 2019
The xRapid platform itself was only launched at the end of last year and its adoption by MoneyGram prompted Ripple’s CEO Brad Garlinghouse to suggest in a Bloomberg interview that “The deal is a big step for Ripple, but I think it’s even a bigger step for the overall industry. There’s been a lot of excitement around what blockchain and digital assets and crypto can mean for the industry and I think it’s the reason why players like Facebook are diving in also.”
— Bloomberg TV (@BloombergTV) June 17, 2019
By entering into a strategic partnership with MoneyGram, Ripple will become the key player for cross-border payments for one of the largest money transfer companies in the world who compete in an estimated $600 billion market sector.
In a press release, Ripple outlined the benefits MoneyGram and their customers will receive in adopting the xRapid platform via the increase in transaction speeds and reduction in associated fees.
However, it is the liquidity solution that xRapid provides that may have been most appealing for MoneyGram who traditionally have needed to pre-fund money transfers. By utilising Ripple’s digital asset, XRP, as a transaction bridging currency the requirement for MoneyGram to hold significant sums of fiat currency is removed.