MoneyGram And Ripple Extend Their Partnership With $11.3 Million

The latest Ripple news show that MoneyGram and Ripple are now extending their partnership, adding $11.3 million more as part of their deal. So far, the money transmission network MoneyGram gained over $11 million from the blockchain based payments firm Ripple Labs.

A new press release by MoneyGram shows that the company said that it received funds from Ripple which were divided over two quarters. In the fourth quarter, $8.9 million and $2.4 million in the third, totalling $11.3 million. The revenue for Q4 was reported to be $323.7 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.