By
Chimamanda U. Martha
April 18th, 2024
In 2019, MoneyGram has received $11.3 million worth of XRP, $8.9 million in the fourth quarter only. In 2020, this number seems to be increased.
Recently, money transfer company MoneyGram has released its 2019 annual report. According to MoneyGram, it has sold $11.3 million worth of XRP received as a result of its commercial partnership with Ripple.
As MoneyGram has revealed in its filing to the SEC, its loss in the fourth quarter of 2019 has totaled $11.9 million. However, the company assured the loss was compensated by XRP sales.
MoneyGram 2019 annual report reads:
“The Company is compensated by Ripple in XRP for developing and bringing liquidity to foreign exchange markets, facilitated by the ODL platform, and providing a reliable level of foreign exchange trading activity.”
MoneyGram signed a partnership deal with Ripple in June 2019. Then, Ripple acquired a $50-million stake in MoneyGram. Within the partnership, the latter utilizes Ripple’s On-Demand Liquidity (“ODL”) platform, as well as XRP, to facilitate cross-border non-U.S. dollar exchange settlements. Since then, MoneyGram has received $11.3 million worth of XRP, $8.9 million in the fourth quarter only.
MoneyGram said:
“Remittance firm MoneyGram received $11.3 million worth of XRP from Ripple in incentive payments last year, but it sold those digital assets as soon as it received them according to a spokesperson.”
In 2020, this number has probably increased.
Further, the company added they sell XRP as soon as they receive it. Now, MoneyGram is using XRP to move 10% of its transaction volume between the U.S. and Mexico.
Ripple to Change the Face of Worldwide Remittance
MoneyGram is one of the most important of Ripple’s partners. Both companies are benefiting from the alliance. As for Ripple, its strategy of integrating banking partners into its ecosystem is clearly expanding. Recently, Ripple entered the second phase of its partnership with DeeMoney, the leading money exchange and transfer service in Thailand. The new partnership allowed Thais to remit funds to their homeland at cheaper rates.
In addition, Ripple expanded its partnership with the South Korean crypto exchange Coinone. According to Ripple, Coinone is penetrating the Korean remittance market via Ripple’s services. Besides, Ripple’s technology allows customers deep access to status. And for Coinone Transfer, customers have live updates on the transfer progress, allowing them to trust the feature a bit more.
Ripple’s CEO Brad Garlinghouse believes that with the further development of cryptos, remittance companies will have to adjust to rapid changes. And as Ripple has started working with fiat-based financial institutions long ago, it can be extremely helpful in linking money transfers to the blockchain. As Garlinghouse has said, Ripple can become a complement to the legacy economy.