Remittance company MoneyGram received a $9.3 mln cash injection from Ripple in the third quarter of 2020, according to its Q3 report.
With transaction expenses of $0.4 mln, the quarterly net benefit from the Q3 incentives is $8.9 mln.
After forging its strategic partnership with MoneyGram in June 2019, Ripple routinely pays the Dallas-based company millions of dollars for providing liquidity for its XRP-based On-Demand Liquidity (ODL) solution for instant cross-border payments.
MoneyGram describes these funds as “market development fees” in its earnings reports.
As reported by U.Today, these fees were initially included in the company’s revenue figure but the Securities and Exchange Commission (SEC) recommended to classify them as “contra expenses” back in March.
Even though Ripple paid 38.4 percent less in market development fees in Q3 compared to Q2 ($15.1 mln and $9.3 mln, respectively), MoneyGram’s net benefit is a tad higher this quarter due to a drastic decline in trading expenses.
Alex DovbnyaIn his December interview with CNN's Julia Chatterley, MoneyGram CEO Alex Holmes revealed that his company doesn't hold any XRP it receives.
Ripple owns nearly a ten percent stake in MoneyGram after investing $50 mln in the company.
More than a year since its partnership with the blockchain decacorn, the remittance veteran continues to fail to turn a profit, reporting a net income loss of $10.9 on a per-share basis.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Godfrey Benjamin
Dan Burgin
Vladislav Sopov