XRP’s price saw a price spike of over 7% on Monday evening after Ripple officially announced they were acquiring 10% of the recognised payment provider company, MoneyGram.
Ripple was the first to announce the news, via their Twitter account:
In a strategic partnership, Ripple will become @MoneyGram's global partner for cross-border payment and foreign exchange settlement, using XRP. https://t.co/4YlnFWy1ha https://t.co/aJnchpzj5k pic.twitter.com/cyald9sikr
— Ripple (@Ripple) June 17, 2019
The terms of the partnership included a 10% acquisition worth $30million of MoneyGram’s shares. Ripple’s team accepted to buy the shares three times the closing price (at $4.10 cents), which shows their commitment to ensuring global adoption. Also, the cross-border payment option was one important goal in MoneyGram’s vision, and with XRP partnership they are one step closer to expand the exchange to unexplored markets around the globe.
Since the beginning of the year, the American transfer company based in Texas have been piloting xRapid. Ripple’s product seemed to be the perfect additive for the future plans of MoneyGram, as they will be using Ripple’s technology to handle global digital funds for at least the next two years.
The deal specifies the use of XRP token via Ripple’s xRapid on-demand liquidity tool for daily operations. The “industry-defining milestone” (according to Ripple’s CEO, Brad Garlinghouse) is bringing cross-border payments to a whole new level by using blockchain technology. By using the XRP’s speed and structure, MoneyGram is expecting transfer fees to drop from $30 to a few cents, and settlement times no more than one minute. MoneyGram already offers services in more than 180 countries and with the latest agreement, they now have a significant competitive advantage.
Alex Holmes (MoneyGram CEO) stated the following:
“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. 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.”.
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