The partnership between Ripple and MoneyGram is having another phase this time around. The global Remittance firm, MoneyGram, has stated that the partnership with Ripple is to get opened to using digital currencies.
In the MoneyGram 2019 Second Quarter Results, which contains projections among business updates of the firm, the firm made the claim.
The 2019 Second Quarter Results, delivered by Chairman and CEO of MoneyGram, Alex Holmes, emphasized the glorified partnership between his firm and Ripple.
Alex, stated that the collaboration with Ripple is to give MoneyGram the advantage to closely align funding costs to daily transactions.
The CEO said the decision will give the firm the opportunity to streamline its universal liquidity management.
He said MoneyGram partnered with Ripple to serve the purpose of offering cross-border remitting using digital assets, emphasizing that MoneyGram has the intention of settling cross-border payment with the use of Ripple’s xRapid.
As said by the CEO on page 7 of the update, MoneyGram is already executing trades using Ripple protocol.
“Ripple will become our key partner for cross-border settlement using digital assets.”
This means the Ripple’s Interledger Protocol will be used by MoneyGram to settle payment using other digital assets aside XRP, which the remittance firm is already using. However, MoneyGram has not stated clearly what other digital currencies they intend using.
Mid June, Ripple announced an investment partnership worth $50 million in MoneyGram.
According to the update, MoneyGram will be using Ripple’s xRapid, signifying that the firm will make use of XRP for cross-border remittance.
Shortly after the announcement, MoneyGram declared it has started using Ripple’s xRapid for remittance.
Since then, XRP’s utility and MoneyGram’s shares have surged, denoting that the partnership remains mutually beneficial.
After the partnership, the volume of XRP’s pair with Mexican peso rose drastically.
Also, head of global institutional markets team at Ripple reported that XRP has been having increased trading volume since the announcement.
Ripple used $30 million to purchase millions of MoneyGram shares at a premium of $4.10 per share. The remittance firm still has the opportunity to acquire more with $20 million within two years.