Ripple has agreed to enter into a strategic partnership with MoneyGram, one of the world’s largest money transfer companies.
Ripple is a provider of leading enterprise blockchain solutions for global payments, and through this partnership Ripple becomes MoneyGram’s key partner for cross-border payment and foreign exchange settlement using digital assets.
The partnership has an initial term of two years and Ripple has agreed to provide a capital commitment to MoneyGram, allowing the company to draw up $50m in exchange for equity over a 2-year period.
The partnership will focus on the xRapid product which is a solution for on-demand liquidity and reduces reliance on pre-funding by enabling money to be sent from one currency and instantly settled in the destination currency.
Alex Holmes, Chairman and CEO at MoneyGram, said: “As the payments industry evolves and matures, it’s imperative that we continue to improve our platform and provide the most effective solution to get funds from point A to point B.
“Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management.”
MoneyGram operates globally in the $600bn global remittance market, serving millions of customers in more than 200 countries and territories, supporting multiple currencies.
Through this strategic partnership, MoneyGram will be able to settle key currencies and match the timing of funding with its settlement requirements.
Brad Garlinghouse, CEO of Ripple, added: “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.
“This is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies.”