Home News Ripple Forms Two-Year Partnership with MoneyGram

Ripple Forms Two-Year Partnership with MoneyGram

by Monica Padillo

U.S.-based firm Ripple has entered a two-year partnership with MoneyGram to process cryptocurrency-based cross-border payments and foreign exchange settlements.

According to a press release, the two firms will take advantage of Ripple’s XRP-powered xRapid offering, which is designed to help settle the transfer of money from one currency to another currency while keeping liquidity costs low.

Under the partnership, MoneyGram will also work to settle key currencies and match the timing of funding with its settlement requirements to reduce costs and risk, as well as boost balance sheet efficiency.

Ripple will invest $50 million in MoneyGram in exchange for equity over the duration of the partnership.

“This strategic partnership will enable MoneyGram to greatly improve its operations and enable millions of people around the world to benefit from its improved efficiency,” Ripple CEO Brad Garlinghouse said.

Alex Holmes, chairman and CEO of MoneyGram, also noted that the xRapid product will allow the money transfer company to instantly settle funds from U.S. dollars to other currencies any time, which could lead to an improvement in its operations and global liquidity management.