- MoneyGram Finally Partners Ripple, to Use xRapid for Cross Border Remittance
- Facebook Coin Libra is rumoured to be launching tomorrow
The much awaited partnership has finally happened. Few minutes back, Ripple Inc. a San Francisco-based blockchain firm has announced it sealed a strategic deal with one of the world’s largest remittance company, MoneyGram.
MoneyGram to Use Ripple’s XRP
The partnership, according to the blockchain firm, will make MoneyGram use of Ripple’s XRP by focusing and exploring xRapid, a cross border remittance tool making use of digital asset XRP.
The deal, as reflected in Ripple’s statement, has an initial term of two years during which Ripple Inc. would become MoneyGram’s primary partner for cross-border payment and foreign exchange settlement using digital assets, Today’s Gazette has learnt.
As agreed in the partnership deal, Ripple says it is offering a big capital commitment to MoneyGram. The capital makes it easy for the firm to get around $50 million in exchange for equity over a two-year period.
MoneyGram is focusing on xRapid
The collaboration focuses on xRapid product, a cross-border solution that offers on-demand liquidity, thereby reducing excessive reliance on pre-funding.
xRapid enables funds to be moved from one currency to another, in a fast and seamless manner to any destination across the globe.
The solution makes use of the native digital asset of the XRP Ledger, XRP, a digital currency that is said to be the most efficient for cross-border payment.
Transaction fees when XRP is used for cross-border settlement is always low compared to what is obtained in the remittance world today where at least nothing less than $30 is charged for every transaction.
In the same line, XRP is fast. It is an almost instant cross-border digital currency.
The partnership, according to Alex Holmes, MoneyGram Chairman and CEO gives the cross-border Caesar the advantage to grow as the payment industry grows.
“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.”
MoneyGram, exist in over 200 countries and territories and offers support for different currencies.
Although, MoneyGram still survives on traditional settlement tools, partnering with Ripple will open the firm to the latest trend in technology.
Brad Garlinghouse, CEO of Ripple, said the deal gives MoneyGram the advantage to increase its operation by making millions of people across the globe use its expanded efficiency.
“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,” Garlinghouse said.
The partnership, had first been rumoured few weeks back. Some community members see it as the beginning of good things for XRP. As Ripple proceeds to capture the remittance industry completely, partnerships with the likes of MoneyGram, Western Union, Visa, MasterCard among others are necessary.
Facebook Coin Libra is Rumoured to be Launching Tomorrow
Ripple and MoneyGram partnership is coming on the eves of a rumoured possible launch of Facebook’s Coin Libra, which many claimed has the potential of rendering Ripple’s XRP and even Bitcoin useless considering the number of big firms which early decided not to be involved with cryptocurrency. Now, firms like Visa, Uber, and a host of other big firms and even governments are going to use the Facebook’s GlobaCoin.
However, Ripple’s partnership with a firm like MoneyGram will cushion the effect that Facebook’s Coin Libra might have on Ripple’s xRapid and on the cryptocurrency space at large.
On the development, popular crypto investor, Anthony Pompliano, sees the Ripple-MoneyGram partnership as a token war, which is beginning to start.
“Facebook is rumored to launch their cryptocurrency, Libra, tomorrow which many believe could render Ripple/XRP useless. Ripple not going down without a fight though — they just agreed to invest $50M in MoneyGram to accelerate adoption. The token wars are upon us!”