Cryptocurrency

Ripple partnership with MoneyGram in danger? Western Union wants to Takeover

As we have reported in the past weeks and months, and is Ripple always close new partnerships with other banks and financial institutions, the Adoption of its products and the native crypto-currency, XRP advance. Only Recently, the CEO of Ripple, Brad garlinghouse, with managers at the Central Bank of Brazil made.

But the serene world in Ripple could be under the circumstances a little shaken. As Bloomberg reported, MoneyGram, one of the most important partners of Ripple received a takeover offer from its largest competitor, Western Union. How is the Acquisition and then what happens with XRP, ODL and Ripple?

Ripple News: Western Union MoneyGram

The global Remissen-payment is a big market and 2 of the largest competitors are MoneyGram, with a market capitalization of 211 million USD, and Western Union 9.74 billion USD. Also Ripple with mixed with his ODL-solution in this market and trying to reduce the cost of cross-border payments for consumers and businesses.

Since the middle of 2019 Ripple and MoneyGram work together in a joint partnership. Part of the deal is that the Crypto-company invested 50 million USD to MoneyGram and a share of 9.95% of the company holds. The Bloomberg citing a “of the matter to the familiar Person,” reported takeover offer by Western Union relates to Ripple, and thus, indirectly, the crypto-currency, XRP, on several levels.

The business of MoneyGram to have suffered through the Corona of a pandemic, because the company had to close many exchange offices. It is possible that the largest counterparty Western Union want to make this weakness by Using it to buy a MoneyGram, and so less competition. Because Western Union is in the last few years, not least by Fintech Startups such as Ripple under increasing pressure.

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What happens with XRP and ODL?

The reports of a possible Acquisition by MoneyGram, by Western Union ejects from the Crypto point of view, especially the question of what will happen with the partnership between Ripple and MoneyGram. In the public report of the deal in 2019, we know that the ODL (formerly xRapid) is used by MoneyGram:

(…) xRapid-product, a solution for On-Demand liquidity, which reduces the dependency of pre-financing, by making it possible to send money from a currency and immediately in the target currency.

So far, the acquisition is confirmed offer from any of the two companies, officially and Ripple Fans can speculate only about what is happening with the partnership in the case of a Takeover. Is possible, in principle, both, the partnership with Ripple will be easily led by Western Union, or you will be terminated.

Although Western Union is currently investigating Reports of what is the Benefit of the company of the ODL of Ripple, but past statements by the CEO Hikmet show Ersek, that his company is so far little enthusiasm. The first Attempts of the company with XRP showed that the use of Ripples XRP was five times more expensive, than to rely on the internal System of the Western Union.

Nevertheless, everything is still open, and Ripple, could be around also for the big profiteer of a transfer, if Western Union should take as a much larger Player in the international payments of the partnership.

(Image Source: Shutterstock)

The comments in this article do not represent any trading recommendations or investment advice.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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