Startup Ripple, known for its unpredictable XRP coin, transferred a total of $ 11 million to MoneyGram payment service. According to SEC reporting, assets were listed during the third and fourth quarters of the past year. At the same time, the money was divided into two transactions, during which they sent $ 2.4 million and $ 8.9 million. MoneyGram received such investments due to its wide use of the blockchain in its functionality. In addition, the company decided to continue its strategic cooperation with Ripple, but the reporting does not indicate how the received investments will be used.
After receiving the first part of the investment, MoneyGram management noted that this money will allow developers to improve the xRapid solution, which is now known as On-Demand Liquidity, and use it to improve the cross-border payment process, including the exchange of cryptocurrencies. The ODL product was first added to the money transfer system in the fall of 2019, and the company itself recognized the Ripple project as its main partner for international transfers. Startup technologies are also used to convert cryptocurrencies into rubles and in other transactions using digital assets.
The ODL solution accounts for about 10% of transactions between US and Mexico. The xRapid product was developed on the basis of the XRP token, therefore, provides instant exchange of cryptocurrency currencies between recipients without the need to make a preliminary purchase of the necessary currency. The funds received from Ripple will help MoneyGram ensure the liquidity of the platforms that are served by the blockchain. In addition, investments will go to increase the level of trading and exchanging cryptocurrencies online – in the future this will have a positive effect on reducing the need for working capital and increasing the company’s income from external resources.
Recall that MoneyGram has become a pioneer among money transfer systems using blockchain technologies on such a scale. For the first time, cooperation between the payment service and the California Ripple project became known in 2018, and later the companies signed an agreement to transfer MoneyGram $ 50 million of investment funds. In addition to using these funds to improve standard financial transactions, the payment system plans to open new corridors based on the Ripple blockchain for money transfers.