On Monday, June 17 2019, Ripple announced a new two year deal with money transfer giant MoneyGram. Ripple will become a strategic partner for MoneyGram, with a focus on using Ripple’s xRapid product to facilitate cross-border payments utilizing the XRP digital asset. The new partnership will also allow MoneyGram to draw on up to $50 million from Ripple over the two-year period in exchange for equity in the company.
With nearly 350,000 agents offices operating in over 200 countries this deal has the potential to be a game changer for both the emerging digital asset space and the cross-border payments industry. Ripple CEO Brad Garlinghouse tweeted the following noting this as a potential “industry defining milestone.”
Popular twitter user and XRP evangelist C3Nik brought to attention an interview between MoneGram CEO Alex Holmes and KRLD Radio on June 18, 2019. During the exchange the MoneyGram CEO was quoted as saying that xRapid will “enable us to improve our global settlement, foreign exchange and liquidity management processes in a pretty dynamic way.” The chairman later went on to say when referring to xRapid and XRP that they plan “to move this forward in a very large tangible way.”
Although xRapid is currently limited to two production corridors (Mexico and the Philippines), it is reported that Ripple plans on an expansion of up to ten more in 2019. Earlier this year Ripple announced a partnership with another money transfer service, RIA. The combination of additional xRapid corridors along with strategic partnerships with large money transfer services should lead to a large increase in daily XRP transaction volume, which could put upward pressure on the XRP price as the platform continues to develop and expand globally.
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