Ripple and MoneyGram’s Long-term Strategic Partnership
In its latest move, the enterprise blockchain solution for payments company Ripple (XRP) has entered into a long-term strategic partnership with the second-largest money transfer company in the world, MoneyGram (MGI), to explore their integration into Ripple’s ecosystem through xVia.
According to the company’s announcement, MoneyGram will pilot the use of XRP in payment flows through xRapid, Ripple’s solution for on-demand liquidity. In the words of Alex Holmes, Chief Executive Officer of MoneyGram, “every day blockchain technology is changing the norm and encouraging innovation. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid. We’re hopeful it will increase efficiency and improve services to MoneyGram’s customers.”
Ripple’s xRapid is a Win-win
Ripple’s xRapid program is a win-win as it benefits both financial institutions and their customers.
- Financial institutions that use xRapid are awarded with the ability to settle on-demand foreign exchange (FX) payments in real time through XRP liquidity, while reducing FX costs and fees
- Customers are benefited by real-time settlement of their FX needs, along with real-time insight into the status of their payments
Key drivers that led to MoneyGram’s decision include XRP’s cost and time efficiency. “By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information,” commented Brad Garlinghouse, CEO of Ripple, who sees good business coming from the global remittance market. Accordingly, money transfer companies such as MoneyGram, that allow people to send cross-border payments, fit in perfectly with Ripple’s long-term vision.
The XRP Slide Had a Breather
The announcement gave some respite to the otherwise sliding Ripple (XRP) coin. XRP touched a high of $2.25 on January 11th at about 15:00 UTC, up 4.2% from the previous days’ high of $2.16; and +14.2% from the January 10th close of $1.97.