MoneyGram’s Q2 report confirms use of XRP to facilitate cross-border settlements
MoneyGram, one of the world’s largest money transfer companies, had announced a strategic partnership with Ripple on June 17, 2019. Since that day, the XRP community has been speculating whether XRP would be part of this deal. MoneyGram has now, once and for all, put these suspicions to rest in their Q2 report. The report said that,
“The commercial agreement allows MoneyGram to utilize Ripple’s xRapid blockchain product, as well as XRP, Ripple’s cryptocurrency, to facilitate cross-border settlement.”
The company anticipates that this would reduce its working capital needs and it will be able to generate additional earnings and cash flows.
One of the world’s largest money transfer companies agreeing to utilize XRP through Ripple’s xRapid was received very well by the cryptocurrency community. When the partnership was first announced, MoneyGram CEO Alex Holmes had called it a “perfect marriage” that would help speed-up things within the firm.
In an interview with Cheddar, the CEO had said that the partnership with their probable future enemy, Ripple, was exciting as the provider of blockchain solutions also needs more people on-board to expand its network. He also called the partnership with Ripple as an important milestone in the Q2 report.
The commercial agreement with Ripple led to an equity infusion of $30 million in MoneyGram, as Ripple purchased the then newly-issued equity of MoneyGram at $4.10 per share. According to the agreement, MoneyGram has an option to sell up to $20 million of additional equity to Ripple through June 30, 2020.
As for Ripple’s native token XRP, it was valued at $0.3155 with a market cap of $13.57 billion, at press time. It noted a minimal fall of 0.23% over the hour. The 24-hour trading volume of the coin was reported to be $821 million, as it fell by 0.02% over the week. However, the coin managed to gain by 0.60% over the last 24 hours.