MoneyGram announced in a press release on Monday, November 25, that Ripple has invested $20 million in the company. Earlier this year, Ripple had already acquired $30 million in equity from the financial services provider. As a result of the investment, Ripple holds a stake of almost ten percent in MoneyGram.
MoneyGram is a global provider of remittance services that can handle transactions in over 200 countries and territories. This strategically important cooperation gives MoneyGram access to Ripple’s On-Demand Liquidity (formerly xrapid) technology. This should enable faster and cheaper processing of banking and cross-border transactions.
The Ripple currency XRP assumes the function of a bridge currency in the transaction process. On crypto exchanges, the crypto currency can be exchanged for the corresponding target currency. For MoneyGram, recourse to XRP therefore means greater liquidity for its payment transactions.
Alex Holmes, Chairman and CEO of MoneyGram, said:
Our partnership with Ripple is fundamental to both the traditional money transfer and digital asset industries – for the first time ever, we are settling currencies in seconds. This initial success encourages us to accelerate the expansion of on-demand liquidity. Partnerships with companies like Ripple support innovation and enable us to invest in creating better customer experiences. I expect to drive our growth into new corridors and new products and services.
Earlier this year, Ripple made a $30 million investment in MoneyGram equity and partnered with MoneyGram to expand cross-border digital asset management. Ripple now owns 9.95 percent of MoneyGram’s shares after the recent $20 million investment.
According to MoneyGram, the company currently moves about ten percent of its Mexican peso currency trading volume through on-demand liquidity. Since partnering with Ripple, MoneyGram has also opened up other sectors, including Europe, Australia and the Philippines.
Brad Garlinghouse, CEO of Ripple, welcomes the collaboration:
Last month, we announced that MoneyGram has started using on-demand liquidity for payments to the Philippines and we look forward to supporting MoneyGram’s continued expansion in Europe and Australia. Digital assets and blockchain technology have the potential to have a huge impact on cross-border payments – MoneyGram and Ripple are an example. We announced this partnership in June, and it is encouraging to see how the rapid growth and benefits will materialize.