- Ripple and MoneyGram have announced a new strategic partnership
- The partnership will see MoneyGram being able to draw up to $50 million from Ripple
- Ripple will receive equity in return
Cross-border transactions are one of the most common use cases for blockchain in the financial world as it is a part of the financial world that is typically expensive and is often slow to conduct but through the use of blockchain is made cheaper and faster. It was therefore little surprise that when JP Morgan announced the launch of their own token, they explained that would be used for the settlement of such payments.
Now Ripple, one of the biggest firms within the blockchain space that is involved in cross-border transactions, has announced via a press release on June 17, 2019, that they have entered into a strategic partnership with MoneyGram, a major money transaction network.
Across the Border
According to the details of this development, this new partnership will last for a period of two years and the two firms will partner to facilitate cross-border payments and foreign exchange settlement by way of digital assets. MoneyGram, during this time, will be able to draw up to $50 million dollars from Ripple and they in exchange will receive equity.
MoneyGram will also make use of Ripple’s xRapid liquidity product which allows for the sending of funds in one currency and the receiving of it in another currency. XRP, Ripple’s native token, will be used for the transfers and xRapid will be able to conduct these transactions at a faster rate than fiat currency or any other digital assets.
“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,” said MoneyGram Chairman and CEO Alex Holmes.
This is not the first time that Ripple will enter into a strategic partnership to facilitate cross-border transactions as they have partnered with American Express to help facilitate such payments for their customers. This speaks to a very essential market problem that can be effectively solved with blockchain and which cryptos that are used to settle various transactions.
Should an effective system be put in place that settlers cross-border transactions with more efficiency than the traditional SWIFT payments, then partnerships such as this will likely exist into the future with many more blockchain and crypto-related firms beyond just Ripple.