MoneyGram Is Using XRP For Cross Border Payment – Q2 Report

Ripple has yet again moved a step forward in its desire for more adoption and growth. The Blockchain solutions provider has gained another partnership that will benefit the price of its native token and bring more users to the network. The latest report relating Ripple’s XRP, the digital asset native to the Blockchain network, is that MoneyGram has been sing XRP for cross-border settlements.

MoneyGram is arguably one of the largest money transfer firms in the world. So such a move for the number three largest digital asset by market cap is a big deal.

MoneyGram and Ripple Partnered on June 17

It should be recalled that MoneyGram had announced a strategic partnership with the Ripple Blockchain on June 17, 2019. However, details of the collaboration and how it will benefit both parties have been scarce. Since the day of the announcement, XRP community members have been speculating whether Ripple’s XRP token would be a part of the deal with MoneyGram.

Now MoneyGram has all but confirmed their speculation once and for all. They have put the suspicions to rest while filing their Q2 report for the fiscal year.

MoneyGram has Confirmed that it Uses XRP for Cross-border Settlements

Amidst the speculation and anticipation regarding MoneyGram’s partnership with Ripple, MoneyGram has given details of the agreement. This has confirmed the role of XRP in the arrangement. Per the report:

The commercial agreement between MoneyGram and Ripple, allows MoneyGram to use Ripple’s xRapid product, and Ripple’s XRP virtual currency to carry out cross-border settlements.”

MoneyGram is hoping that the move will help cut down its working capital needs. This will enable it to generate additional funds and cash flow avenues.

The news of one of the world’s largest funds transfer companies agreeing to make use of XRP via Ripple’s xRapid product was received positively by the crypto community. When the collaboration was initially announced, the CEO of MoneyGram Alex Holmes, called it a “perfect marriage.” He claimed that it would help to speed-up things in the funds transfer giant.

MoneyGram CEO: Ripple Collaboration an “Important Milestone”

During an interview with Cheddar, Holmes, the CEO of MoneyGram, said that the partnership the Ripple network (their likely future enemy), was exciting. His reason was that the Blockchain solutions provider needs more people on-board its platform in order to expand its network. Holmes also called the partnership with the Ripple network as an important milestone in MoneyGram’s Quarter 2 report.

The commercial agreement between Ripple and MoneyGram resulted in an equity infusion of about $30 million into MoneyGram. Because Ripple purchased the newly-issued equity for MoneyGram at about $4.10 per share. Per the agreement, it is understood that MoneyGram keeps an option to sell about $20 million of equity to Ripple from that date to June 30, 2020.

Regarding Ripple’s, native token, the XRP, the coin was reportedly valued at $0.3155. According to CoinMarketCap, the coin had a market capitalization of $13.57 billion, as of press time. CoinMarketCap data also shows that XRP recorded a minimal fall of about 0.23% in the last 24 hour. The coin has a 24-hour trade volume of $821 million as of when this report was published.

Ripple’s XRP fell by 0.02% in the weekly charts. However, the digital asset managed to gain over 0.60% in the last 24 hours.

Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.

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