In a recent public statement, the leading money transmission network, MoneyGram, has reported that Ripple, a blockchain-based payments firm, has completed its commitment of the final 20 million dollars Investment.
MoneyGram Chairman and CEO, Alex Holmes, said,
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. Partnerships with companies like Ripple support innovation and allow us to invest in creating better customer experiences. I anticipate furthering our growth into new corridors and exploring new products and services.
Earlier in June, the two organizations became a part of the strategic alliance for two years to acquaint with foreign exchange settlements and cross border payments regarding digital assets. As a part of the deal, currently, MoneyGram would be able to draw 50 million dollars from Ripple in return for equity.
Presently, with new investments coming from Ripple, the blockchain organization claims that 9.95% of the common stock of MoneyGram and roughly 15% on a fully-diluted basis, includes non-voting warrants associated with Ripple.
Brad Garlinghouse, Ripple’s CEO, opined in this latest investment,
The deal also provides Ripple an unprecedented opportunity to make the case that its product called X-Rapid, which allows for the transfer of XRP, is superior for moving money across borders.
He further stated that RippleNet is as of now used by 300 financial establishments, and also said that banks should use Ripple (XRP) as a sort of bridge currency, despite just leaving the money as a form of collateral in the foreign accounts.
Moreover, MoneyGram will allegedly use Ripple’s xRapid liquidity item to permit money to be transferred from one currency and immediately settled through the destination currency. Besides, by using XRP token for these types of transfers, xRapid can settle these transactions faster than fiat currencies or other major cryptocurrencies.
Ripple made an initial investment of 30 million dollars earlier this year, in MoneyGram equity. Meanwhile, it had also signed the commercial agreement with MoneyGram for cross border transactions using cryptocurrencies.
Currently, MoneyGram is moving about 10% of its Mexican peso foreign exchange trading volume done through on-demand liquidity. Moreover, it has already started transacting in an additional four cross-border countries, which includes Australia, Europe, and the Philippines.