Blockchain company, Ripple has entered into a partnership with money transfer giant, Moneygram. Through this partnership, Ripple is poised to become MoneyGram’s key partner for cross-border payment and foreign exchange settlement using digital assets.
Announcing this development, the Chief Executive Officer (CEO) of Ripple, Brad Garlinghouse said, “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. This is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies.”
This partnership will see the companies focussing on xRapid, which facilitates fiat money transfer from one currency to another, through blockchain. A press release noted that xRapid leverages XRP, the native digital asset of the XRP Ledger, as a real-time bridge between the sending and receiving currencies.
Alex Holmes, MoneyGram Chairman and CEO, said, “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 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.”
Interestingly, this is not new. The partnership between Ripple and Moneygram has been in place since last year. When the partnership was first announced, the latter had said, “XRP remains the most efficient digital asset for payments with transaction fees at just fractions of a penny, compared to Bitcoin fees of about $30 per transaction. Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour.”
In the statement, Ripple CEO, Brad Garlinghouse had described the partnership as strategic and said it would demonstrate the technological capability of XRP to lower cost of transfer of funds between friends and families.
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