Ripple News Today – Garlinghouse declared that the Moneygram partnership signifies one of the first use cases of a crypto asset in production at scale. He stated: “This is a big deal. If I were betting now, a year from now the MoneyGram deal will have a more consequential impact on the crypto markets than the Libra white paper.” With xRapid volumes up 170% between Q1 and Q2 2019, far ahead of MoneyGram development, the CEO in a recent Ripple price forecast, forecasted xRapid would reach over $1 billion in volume by 2020.
Ripple News Today – XRP News Today – Ripple News Update – Ripple Partnership With Moneygram Yielding Investment
Ripple is garnering a strong balance sheet and is ready to take this base to higher advantages. The CEO of the company, Bradley Kent Brad Garlinghouse is swinging bases in terms of investments and purchases centered on the 30 Million U.S. Dollars investment in MGI (Moneygram). The CEO said the company is looking into several investments and acquisitions, after its $30 million partnership with MoneyGram in June.
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Ripple’s deal with MoneyGram saw it procuring a 10% stake in the unit, with an opportunity to increase its investment by an additional $20 million within two years. “We’re in a very strong position, our business is growing strongly, we have a strong balance sheet, and I intend to press our advantage. […] We are probably the largest investor in blockchain and crypto on the planet. We have publicly announced we have made about $500m [of investments] in the space over the last 18 months”, said Ripple CEO.
On August 3rd, 2019, MoneyGram started using Ripple’s xRapid liquidity product, xRapid has a key requirement of the $30 million deal. This was disclosed at the company’s second-earning call by MoneyGram CEO Alex Holmes.
xRapid uses the XRP token to simplify the prompt reimbursement of money sent in one currency into the desired currency. This platform, however, is particularly not operated by many of Ripple’s other clients, such as Santander, Standard Chartered and American Express.
In his interview with Yahoo! Finance, Garlinghouse in a recent interview with Yahoo! Finance, discouraged the belief that Ripple had split out a dividend on MoneyGram shares to guarantee the company would approve the technology.
“I wouldn’t characterize it as an inducement […] we’re getting more and more customers to sign up and we’re seeing that value. If we want to accelerate that, we have the option of doing things that might be perceived and characterized by some as an inducement”, he stated.
Presently, Ripple is allegedly authorizing two recent financial institutions weekly, this is with over 200 contracts with universal clients already secured. According to Garlinghouse, he anticipates about 100 new contracts to be signed this year, 20% of which will include xRapid and XRP. From a recent Ripple price analysis, Ripple has increased its quarterly XRP sales by approximately 48% in Q2 2019, selling $251.51 million worth of the token.
Garlinghouse disclosed that Ripple paid a high price for the deal due to the unwillingness of the private equity firm. Thomas H. Lee Partners to sell at market values. In the 12 months leading to the partnership, Moneygram lost almost 80%, fortunately, it increased 168% afterward.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.