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Breaking: Ripple Partners With Moneygram for XRP Utilization

Ripple Enters Massive Partnership; XRP Spikes

According to a post published to the blog of Ripple Labs, the San Francisco-headquartered fintech company has joined in a partnership with MoneyGram, one of the world’s most prominent money transfer firms. As a result, the value of the XRP crypto asset has spiked, rallying by 7% in the past 24 hours while Bitcoin has posted a relatively skimpy 1.5% performance.

Breaking: Ripple Partners With Moneygram for XRP Utilization 1

This partnership, which is currently contracted to last for two years (which can be extended), Ripple will be MoneyGram’s primary partner for cross-border payment and forex settlement through the medium of digital assets. In other words, MoneyGram will be utilizing XRP in its primary business line — money transfer. For those that are fans of Ripple and its go-to cryptocurrency, this news is monumental.

According to a Wall Street Journal report, this partnership was triggered by Ripple investing $50 million in MoneyGram, which has an $80 million market capitalization according to Google Finance. The firm has purchased 10% of the firm for $30 million (implying a private valuation of $300 million, down from $1.2 billion) and gives MoneyGram the right to ask for $20 million from its financier any time in the next two years.

Due to this news, shares in the money transfer firm have jumped by 114%, rallying from around $1.5 to $3.10 in the after hours trading session.

This partnership will take a big focus on xRapid, Ripple’s solution for liquidity that utilizes XRP directly as a “real-time bridge between the sending and receiving currencies.” Alex Holmes, the chief executive of MoneyGram, claims that this partnership will allow for his firm 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.”

This arguably marks the biggest case of real-world XRP adoption to date, making it no surprise that the cryptocurrency continues to rally as Ethereum World News writes this.

Photo by Armando Arauz on Unsplash
Nick Chong
About author

Nick has been enamored with cryptocurrencies since foraying into the industry in 2013. He has since gotten involved as a reporter, covering news on a number of blockchain- and crypto-related outlets.
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