MoneyGram – the US-based money transferring firm – has reportedly revealed that Ripple has fulfilled its initial promise to the firm, by investing a final $20 million in MoneyGram.
Specifically, MoneyGram revealed that Ripple Labs Inc. has upheld their commitment, with a $20 million equity investment made to the firm, completing over one-third of Ripple’s initial $50 million equity investment promise.
Previously in June this year, the 2 firms have reportedly forged a strategic collaboration, which will last for 2 years, in an attempt to develop business in cross-border payments and foreign exchange settlements with cryptocurrencies. The alliance will give way for a trade, MoneyGram receives $50 million dollars in return for equity to Ripple.
MoneyGram plans to utilize Ripple’s xRapid liquidity systems to facilitate inter-currency conversion – money transferred in one currency will be converted to the expected one.
With the employment of Ripple’s XRP token for the transactions, xRapid can achieve a more enhanced speed, compared to fiat currencies or different other digital assets.
“Last month, we announced that MoneyGram began using On-Demand Liquidity for payments to the Philippines, and we’re excited to support MoneyGram’s further expansion into Europe and Australia. Digital assets and blockchain technology have the potential to make a tremendous impact on cross-border payments — MoneyGram and Ripple is an example of that […] In June, we announced this partnership, and it’s encouraging to see the rapid growth and benefits come to life.” Ripple’s CEO Brad Garlinghouse shared his remarks regarding the announcement.