MoneyGram, a major money transmission network enters a strategic partnership with Ripple, blockchain-based payments firm as announced through a press release on June 17.
With the two-year agreement, the firms will become partners for cross-border payments and foreign exchange settlements with digital assets. Wherein MoneyGram will be able to draw up to $50 million dollars from Ripple in exchange for equity.
Purportedly, MoneyGram will employ Ripple’s xRapid liquidity product to send money in one currency and instantly settled in the destination currency. Ripple’s XRP token would be used for such transfers and xRapid will 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.”
As per the website, MoneyGram is the second largest payments firm in the world. Operating over 200 countries, MoneyGram’s main business is in the global remittances market with an estimated worth of $600 billion.
In April, a subsidy of financial giant HSBC, Saudi British Bank (SABB) has officially launched an instant-cross border payment system powered by Ripple. Majed Najm, the deputy managing director of corporate and institutional banking at SABB, states that incorporating the product in itself is a big win for its consumers as they can now avail the speed and transparency of cross-border transactions.
Image source – Ripple Twitter