Dallas-based money transfer giant MoneyGram is to partner with blockchain firm Ripple to use its XRP crypto-token for international transfers.
“Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid… We’re hopeful it will increase efficiency and improve services to MoneyGram’s customers,” Alex Holmes, chief executive officer of MoneyGram, said.
Significant step for XRP
The deal is a major win for Ripple and signifies a substantial uptick in demand for the XRP digital currency, which had faced questions about its practical uses.
MoneyGram will now pilot the use of XRP through a new Ripple service, called xRapid, designed to provide liquidity to financial institutions.
XRP is one of the most efficient digital asset for payments with minute transaction fees compared to Bitcoin and average transaction times of 2-3 seconds compared with Bitcoin which can range from 15 minutes to an hour.
The use of XRP allows MoneyGram to solve the age-old liquidity issue most financial institutions face while saving time and money. Additionally, customers will have the ability to send funds real time, with transparency and certainty.
xRapid supporting on-demand liquidity
MoneyGram will access and use XRP, the native digital asset of the XRP Ledger, in their payment flows through xRapid, Ripple’s on-demand liquidity product. xRapid enables real-time foreign exchange (FX) settlement through XRP, which gives financial institutions the ability to unlock liquidity and access multiple corridors with one pre-funded originating account.
“The payments problem doesn’t just affect banks, it also affects companies like MoneyGram, which help people get money to the ones they care about…By using a digital asset like XRP that settles in three seconds or less, our clients can move money as quickly as information,” Brad Garlinghouse, CEO of Ripple, said.
Financial institutions can send on-demand payments, reduce FX costs and fees, and provide real-time insight into the status of their payments.