According to a press release on June 17th, MoneyGram has agreed on a partnership, which will last around 2 years, where they will work with Ripple to design cross-border payments, as well as foreign exchange settlements, with digital assets. Ripple will also transfer $50 million dollars to MoneyGram, in exchange for equity.
MoneyGram will have access to xRapid – a Ripple liquidity product – as a mean of facilitating instantly settled money transactions from one coin to the other. By utilizing Ripple’s XRP token for the transferring process, xRapid will help enhance the transaction speed, compared to using fiat currency or other major cryptocurrencies.
“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.” MoneyGram Chairman and CEO Alex Holmes stated.
As stated in its official website, MoneyGram currently ranks number two across in the top payment company list. MoneyGram focuses its business mainly in the global remittances market, with an estimated value stands at $600 billion.
Earlier, Ripple has reportedly donated $25 million worth of Ripple’s native token XRP to San Francisco State University (SFSU)’s College of Business. The gift is one of the two largest made to the university in its history, and SFSU believes it is also the largest donation ever made in cryptocurrency to an American university to date.