Ripple, a San Francisco, California-based enterprise blockchain solution provider, as per recent reports, has announced a capital investment amounting up to $50 million to MoneyGram, a Dallas, Texas-based payments platform, in exchange for two-year equity.
Ripple, by sealing this strategic partnership agreement with MoneyGram, will now play the key role, offering cross-border payment and foreign exchange settlements by employing digital assets.
To cut short on the associated costs and timescales that accompany the settlement processes – using traditional foreign exchange markets that demand purchasing of most currencies, in advance – the partnership will focus its attention on Ripple’s on-demand liquidity product – xRapid.
xRapid, employing the cheaper and more efficient XRP tokens, the native cryptocurrency of the Ripple payments network, bridges the sending and receiving currencies in real-time. The choice of XRP tokens ensures lesser transaction times, i.e. two to three seconds, and lower transaction fees, lesser than a penny, a definite yes when compared to other digital assets that demand up to $30 per transaction.
“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,” states Alex Holmes, Chairman & CEO of MoneyGram. “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.”