Ripple Makes Additional Investment in MoneyGram to Propel XRP Adoption

News
Mon, 11/25/2019 - 16:40
Alex Dovbnya
MoneyGram to start using Ripple's using On-Demand Liquidity (ODL) solution in Europe, Australia, and other major markets
Cover image via www.123rf.com
Contents

Blockchain company Ripple has put an additional $20 mln into money transfer veteran MoneyGram in order to complete its investment commitment, its press release states. Ripple now owns a 15 percent stake in MoneyGram (including non-voting warrants).     

"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," said Alex Holmes, MoneyGram Chairman and CEO.

Related
Ripple’s Top Executive Gets on Blockchain Association Board as Co-Chair

A win-win partnership

Ripple and MoneyGram started their collaboration dates back to 2018 when the latter signed on to run a pilot program to test digital token XRP to reduce the costs of its money transfers. Back in June, the cryptocurrency monolith agreed to buy $30 mln worth of MoneyGram shares as part of the two-year partnership that would require the old-school money transfer firm to use XRP for cross-border payments. Ripple could purchase $20 mln more at the price of a minimum of $4.10 per share.  

Back then, Garlinghouse touted the deal as "a major milestone" for the entire cryptocurrency industry. It could help Ripple prove the benefits of the blockchain technology while allowing MoneyGram to breathe new life into the fading company that struggles to remain profitable

Related
RippleNet Home: Ripple Introduces Revolutionary Product for Connecting Its Clients

New markets for XRP

The partnership has turned out to be a success. Ripple's On-Demand Liquidity (ODL) solution is now responsible for processing 10 percent of all MXN-USD transactions conducted by MoneyGram. As reported by U.Today, XRP's liquidity index recently surpassed the 6 mln mark on Bitso, the number one Mexican exchange. With the freshly injected investment, MoneyGram will continue its expansion into other markets such as Europe and Australia.     

"Last month, we announced that MoneyGram began using On-Demand Liquidity for payments to the Philippines, and we're excited to support MoneyGram's further expansion into Europe and Australia. Digital assets and blockchain technology have the potential to make a tremendous impact on cross-border payments - MoneyGram and Ripple is an example of that," said Brad Garlinghouse, Ripple's CEO.

This is expected to further boost the adoption of XRP. On Nov. 23, XRP set a new daily transaction volume high, greatly surpassing other top coins.  

Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

Top 10 Best Cloud Mining Sites in 2020
TOP 20 Best Bitcoin Trading Bots in 2020

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy