Ripple and Moneygram entered into a partnership earlier this year, with Ripple agreeing to invest a total of USD 50 million into Moneygram stock, and to buy that stock above market value in order to provide funds for the latter’s expanding operations. Now, Ripple has completed this commitment via a final USD 20 million investment, but this is only the beginning of the partnership between the two financial giants. With Ripple’s On-Demand Liquidity service, which uses the XRP cryptocurrency, Moneygram is now able to settle cross-border payments within seconds.
Moneygram Chairman and CEO Alex Holmes says that these are the fastest ever settling times for cross-border payments in the history of the company. The experience will now lead to the use of Ripple’s On-Demand Liquidity service expanded worldwide. Already, 10% of Moneygram’s Mexican peso foreign exchange trading volume is handled through Ripple’s service, with four additional On-Demand Liquidity corridors being opened up in Europe, Australia, and the Philippines.
It seems that the partnership between Ripple and Moneygram is an excellent example of how cryptocurrency and blockchain technology can revolutionize global money remittance systems.
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