Blockchain giant Ripple announced the formation of a strategic partnership with popular money transfer company MoneyGram (MGI) today for cross-border payments and foreign exchange settlement using XRP.
In a strategic partnership, Ripple will become @MoneyGram‘s global partner for cross-border payment and foreign exchange settlement, using XRP. https://t.co/4YlnFWy1ha https://t.co/aJnchpzj5k pic.twitter.com/cyald9sikr
— Ripple (@Ripple) June 17, 2019
According to the announcement, Ripple has agreed to provide up to $50 million in capital to MoneyGram in exchange for equity over a two-year period. MoneyGram will also look to leverage the xRapid product, which will allow the company to tap into on-demand XRP liquidity for cross-border payments.
“As the payments industry evolves and matures, it’s imperative that we continue to improve our platform and provide the most effective solution to get funds from point A to point B,” said MoneyGram chairman and CEO, Alex Holmes. “Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management.”
“This strategic partnership will enable MoneyGram to greatly improve its operations and enable millions of people around the world to benefit from its improved efficiency,” added Ripple CEO Brad Garlinghouse. “This is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies.”
Following the news, XRP briefly surged over 7% but has since pulled back to $0.4465, giving the second-largest altcoin to a $19 billion market cap.
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