MoneyGram, one of the prime money transmission networks, has entered into a strategic partnership with Ripple, the blockchain-based payments firm. The development first came out in the public domain through a press release on June 17.
The 2 firms will become partners in cross-border payments and foreign exchange settlements with cryptocurrency and digital assets, as part of the two-year agreement. Moreover, MoneyGram will be able to draw up to $50 million dollars from Ripple in exchange for equity, as part of the agreement.
Ripple’s xRapid and Moneygram
MoneyGram will ostensibly use Ripple’s xRapid liquidity product. It will essentially allow money to be sent in one currency and right away settled in the target currency. xRapid can supposedly settle such transactions quicker than with fiat currencies or other major cryptocurrencies or virtual assets, in using Ripple’s XRP token for such transfers.
Alex Holmes, Chairman and CEO of MoneyGram mentioned that through Ripple’s xRapid product, they will have the capability to immediately clear up funds from United States dollars to target currencies on a 24/7 basis. As per him, this has the prospective to transform their operations and noticeably rationalize their global liquidity management.
It is to be noted that MoneyGram is the 2nd largest payments firm on the planet, operating in over two hundred countries, as per its website. Notably, much of MoneyGram’s business is in the worldwide remittances market. Interestingly, the market’s valuation is projected to be worth $600 billion.
Ripple (XRP) and India Federal Bank
In the month of March this year, India’s Federal Bank, a commercial private bank, partnered with Ripple to make use of its network for cross-border remittances. Notably, the aforementioned partnership was part of an initiative to apply new technologies to Indian Federal Bank’s remittances network, having also launched 2 platforms in the UAE for facilitating payments to India.
It is to be noted that Ripple instigated a Brazilian office, earlier this month, with the objective of escalating across Latin America. Former CEO at the Brazilian subsidiary of global warranty solution provider The Warranty Group, Luiz Antonio Sacco will purportedly lead the new office.
What do you think about the strategic partnership between Ripple (XRP) and Moneygram? Do you think it will bolster XRP adoption among masses? Let us know in the comments below.