Blockchain payment firm Ripple has entered a partnership deal with online money transmission giant, MoneyGram according to a press release published on June 17th, 2019.
According to the agreement reached, the both firms will become a cross-border payment and foreign exchange settlements with digital assets. MoneyGram will be able to draw up to $50 million dollars from Ripple in exchange for equity.
With the deal, MoneyGram will also be utilizing the digital token XRP as part of its day-to-day operations by way of Ripple’s xRapid transaction product. MoneyGram said that it was piloting the token back in January 2018.
MoneyGram already services 200 countries and territories, with roughly $600 billion processed in the global remittance market. At present, the company uses traditional foreign exchange markets, which requires pre-funding accounts. Ripple and MoneyGram anticipate settlement fees dropping from $30 per transaction to “fractions of a penny,” while settlement times are expected to drop from 15-60 minutes to just a few seconds.
In a statement, MoneyGram CEO Alex Holmes said “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.”
In March, India’s Federal Bank (IFB), a commercial private bank, partnered with Ripple to use its network for cross-border remittances. The partnership was part of an initiative to apply new technologies to IFB’s remittances network, after launching two platforms in the United Arab Emirates for making payments to India.
“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.”
Also earlier this month, Ripple launched a Brazilian office with the goal of expanding across Latin America. Luiz Antonio Sacco, former CEO at the Brazilian subsidiary of global warranty solution provider The Warranty Group, will reportedly lead the new office.