Cryptocurrency

Ripple will invest an additional 11.3 million USD to MoneyGram

MoneyGram is probably one of the most important partners of Ripple. The reason for this is not only because of the 10% shares, which has got Ripple for a Investment in the amount of 50 million USD, but mainly due to the fact that MoneyGram for payment channels, on-Demand Liquidity (ODL) of the Ripple falls back. In ODL, international payments are carried out quickly and cost-effectively via XRP, which acts as a bridge currency. Now, it is clear from the documents filed with the Securities and Exchange Commission (SEC), that Ripple has transferred within the last half-year, 11.3 million USD to MoneyGram.

MoneyGram gets a further 11.3 million USD from gox

MoneyGram, the payment solutions of Ripple testing since 2018. Including ODL, which was formerly under the name of xRapid known was. In 2019 the use of ODL started with XRP, then to travel and was able to record strong growth. This is one of the most important use cases for XRP. Therefore, many at the time assumed that due to the increased use of XRP, the price also needs to rise. But it happened exactly the opposite. The XRP price has lost in 2019 more than 50% of its value.
Ripple has carried out the payments in two instalments. In the third quarter of 2019 2.4 million USD, and a further 8.9 million USD in the fourth quarter, MoneyGram transferred. Thus, a total of 11.3 million USD is obtained. This payment has has made the Investment in the amount of 50 million USD, which Ripple in mid-2019, with nothing to do. Here is an additional payment. From the documentation it is not clear what the 11.3 million USD will be used. In the submission of MoneyGram in the third quarter, three months ago, it was said, however, that the agreement with Ripple allows MoneyGram, “the use of the block chain, product-On-Demand-Liquidity of Ripple” and XRP in order to facilitate cross-border payments.

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Ripple assumes investment costs of MoneyGram in ODL

In the message to the third quarter, it says:

The company will be compensated by the Ripple for the development and provision of liquidity for the foreign currency markets and provides a reliable measure of foreign exchange trading activities. The company believes that this partnership will reduce our need for working capital and additional revenues and cash flows will generate.

Ripple festival continues to MoneyGram and tries to establish its payment solutions in the company. This Ripple is willing to assume the costs incurred for the construction of the payment corridors, etc. themselves. The investment costs should be offset in the future by additional income.
It remains to be seen whether the investment pays off and whether or not MoneyGram will continue in the future to the payment solutions of Ripple. Much more interesting is probably for most, like the XRP price will perform. Because currently there is no clear evidence that increased use of XRP as a bridge currency leads to a rising price. In the past we have seen rather the opposite.
How will the partnership between MoneyGram and Ripple? Can be inspired the XRP price this?
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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.