Ripple has agreed to enter into a strategic partnership with MoneyGram, one of the world’s largest money transfer companies.
Ripple would become MoneyGram’s key partner for cross-border payment and foreign exchange settlement using digital assets over an initial period of two years. As part of the partnership, Ripple has agreed to provide a capital commitment to MoneyGram, which enables the company to draw up to $50 million in exchange for equity over a two-year period.
«As the payments industry evolves and matures, it’s imperative that we continue to improve our platform and provide the most effective solution to get funds from point A to point B,» said Alex Holmes, MoneyGram CEO in a media statement. «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.»
Improved Operations
Traditional foreign exchange markets require remittance players to purchase most currencies in advance to meet its settlement obligations. Through this strategic partnership, MoneyGram will be able to settle key currencies and match the timing of funding with its settlement requirements reducing costs, improving its balance sheet efficiency and reducing risk.
«This strategic partnership will enable MoneyGram to greatly improve its operations and enable millions of people around the world to benefit from its improved efficiency,» said Brad Garlinghouse, CEO of Ripple. MoneyGram operates globally in the $600 billion global remittance market, serving millions of customers in more than 200 countries and territories.
