Ripple’s partnership with MoneyGram that was announced earlier according to CEO Brad Garlinghouse says that the company is now looking into more investments and acquisitions as we read in some of the best cryptocurrency news sites.
Ripple’s partnership with MoneyGram which is the second-largest remittances company worldwide made a 10% purchase in stakes in the entity with the option to increase the investment by more than $20 million in the next few years. MoneyGram started using Ripple’s xRapid Liquidity product back on August 3rd which was the central deal of the $30 million business as revealed by the MoneyGram CEO Alex Holmes during the second-quarter earnings call that happened at the beginning of his month. XRapid uses the XRP token to facilitate instant settlement of money that is sent in one currency into a destination currency but it is not used by many Ripple’s other clients such as Standard Chartered, American Express, and Santander. In an interview with Yahoo! Finance, Garlinghouse denied the claims that Ripple forked out of a premium on MoneyGram shares to ensure that the company will adopt the technology:
‘“I wouldn’t characterize it as an inducement […] we’re getting more and more customers to sign up and we’re seeing that value. If we want to accelerate that, we have the option of doing things that might be perceived and characterized by some as an inducement.”
Garlinghouse stated that Ripple paid a huge price for the deal given the reluctance of privacy equity company Thomas H. Lee Partners to sell at market value. The shares of the remittances company dropped almost 80 percent in the past 12 months leading up to the partnership between Ripple and Moneygram. The CEO noted:
“This is a big deal. If I were betting now, a year from now the Moneygram deal will have a more consequential impact on the crypto markets than the Libra white paper.”
As noted in the latest cryptocurrency news, xRapid volumes up to 170% between the first and second quarter of this year and it is way ahead of Moneygram’s development. Ripple is now signing on two new financial institutions with more than 200 contracts with clients across the world.
MoneyGram And Ripple Extend Their Partnership With $11.3 Million
"MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities."Nothing in the SEC filings state what Ripple's investment will be used for. Still, MoneyGram's agreement with Ripple has previously allowed it to use XRP and its blockchain product named ODL (On-Demand Liquidity) to facilitate cross-border payments.
"[MoneyGram] is compensated by Ripple for developing and bringing liquidity to foreign exchange markets, facilitated by Ripple's blockchain, and providing a reliable level of foreign exchange trading activity. The Company expects that this partnership, at scale, will reduce our working capital needs and generate additional earnings and cash flows."MoneyGram and Ripple already were in a financial tie. The two firms announced their partnership back in January 2018 when MoneyGram decided to integrate XRP into its payment system. In June 2019, we saw that the two firms entered into a partnership to collaborate on cross-border payments and foreign exchange settlements with digital assets. The blockchain news then showed that Ripple followed through with a $50 million investment, completed in November. Despite the close working relationship, not all money transfer methods are being handled by Ripple. Reports recently showed that MoneyGram unveiled FastSend, a service which allows for real-time money sending based on Visa. While Ripple is doing good by expanding its partnerships and actively improving its blockchain, the token is falling down just like many other altcoins. Right now, the Ripple news and XRP updates show that the coin is in a 8.33% decline, going to new levels at $0.2438 in the wake of a major selloff which occurred on the markets overnight. The total cryptocurrency market today is at $261 billion.
XRP Traders Turn Bullish, Price Could Reach $0.46: Analysis
“#Ripple CEO Brad Garlinghouse said that stressing compliance is key to getting bankers on board with #crypto. We don't need bankers to get involved in the crypto. Maybe he and his company do, but the space doesn't. Crypto doesn't need banks, because crypto will replace them.”Brad Garlinghouse was in an interview when he commented that there are too many crypto assets out there. There are about 3,000 different digital assets that are trading on a daily basis.
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