Major money transmission network MoneyGram has entered into a strategic partnership with blockchain-based payments firm Ripple, according to a press release on June 17.
As part of the two-year agreement, the two firms will become partners in cross-border payments
and foreign exchange settlements with digital assets. As part of the
agreement, MoneyGram will be able to draw up to $50 million dollars from
Ripple in exchange for equity.
MoneyGram will
purportedly use Ripple’s xRapid liquidity product, which allows money to
be sent in one currency and instantly settled in the destination
currency. In using Ripple’s XRP token for such transfers, xRapid can purportedly settle such transactions faster than with fiat currencies or other major digital assets. MoneyGram Chairman and CEO Alex Holmes said:
“Through
Ripple’s xRapid product, we will have the ability to instantly settle
funds from U.S. dollars to destination currencies on a 24/7 basis, which
has the potential to revolutionize our operations and dramatically
streamline our global liquidity management.”
According
to its website, MoneyGram is the second largest payments firm in the
world, operating in over 200 countries. Much of MoneyGram’s business is
in the global remittances market, the value of which is estimated to be worth $600 billion.
In March, India’s Federal Bank (IFB), a commercial private bank, partnered
with Ripple to use its network for cross-border remittances. The
partnership was part of an initiative to apply new technologies to IFB’s
remittances network, having also launched two platforms in the United Arab Emirates for making payments to India.
Earlier this month, Ripple launched a Brazilian office with the goal of expanding across Latin America.
Luiz Antonio Sacco, former CEO at the Brazilian subsidiary of global
warranty solution provider The Warranty Group, will reportedly lead the
new office.
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