Featured

3 key Notes on the new Partnership Between Ripple and MoneyGram

Things are bound to get very interesting where RIpple and XRP are concerned. The payments company has forged a strategic partnership with MoneyGram, a company already looking into using one of its technology products for cheaper and faster money transfers. This new partnership will have some interesting consequences and will undoubtedly get people talking about what all of this means in the long run.

The Two-year Deal (Initially)

When a strategic partnership is formed between different companies, most people tend to think this is an agreement with an indefinite closure date. That is far from the case where this particular partnership is concerned. Ripple has confirmed it is a two-year deal, albeit that initial term can be extended later on. It will primarily depend on what both parties can bring to the table and whether or not the end results please everyone involved.

Although two years might not seem like much, it is still ample time to build a solid foundation for future collaborations. Considering how MoneyGram has already shown an interest in xRapid to speed up global remittance transfers, one also has to keep in mind both companies have been “working together” for some time already. Ripple is slated to become MoneyGram’s “key partner” for cross-border transfers, which shows that there is a lot more to this agreement than one might think.

The $50m Capital Commitment

One of the more interesting aspects regarding the Ripple-MoneyGram partnership is how the former company will provide a capital commitment of up to $50m. This does not mean Ripple is handing over $50m in cash to MoneyGram, although some enthusiasts might interpret it that way. Instead, this agreement will allow the remittance company to draw up to $50m in exchange for equity.

Related Post

Such agreements are not uncommon in the financial world by any means. It is an extra layer of commitment between both parties to ensure the original deal is honored and everything is on the up-and-up. This $50m capital commitment will also last for the full two years, thus it will be rather interesting to see how this particular factor plays out in the long run. An interesting touch which further confirms both parties are very serious about this new collaboration.

A Stronger Focus on xRapid

As was somewhat to be expected, the main focus of this “renewed collaboration” is to further expand the use of xRapid. This technology stack developed by Ripple makes it possible to send nearly instant transactions around the world for a fraction of the current cost. Being able to send money from one currency and have it settled in a different one within seconds is something every money transfer service provider will benefit from in the long run.

According to the company, XRP will remain the most efficient digital asset for settlement with transaction fees at such low levels. This new partnership will further confirm whether or not that is indeed the case, as it seems likely a lot more thorough trials will be conducted in the years to come. What those trials will embody exactly, has yet to be determined at this time. As MoneyGram is a global company, there are a lot of possible avenues to explore in this regard.


Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

BDAG’s 400% Bonus Now Live! Cardano ETF Update & LINK Analysis

Crypto discussions often fluctuate between significant advancements and future price forecasts, and this week is…

8 minutes ago

POLKADOT PRICE ANALYSIS & PREDICTION (March 4) – DOT Declines 7% Today Amid Fresh Dip, Signals Continuation

As altcoins continue to bleed out, DOT showed signs of weakness and posted a minor…

15 hours ago

Whale Leverages Big Bets in Crypto Markets with $6M Deposit, Profits Soar

For a long time, the cryptocurrency market has been a place for large institutional players…

15 hours ago

New Investor Position in $LAYER Gains $228,000 as Market Shows Promising Potential

In the constantly evolving world of cryptocurrencies, one investor's recent choice to open up a…

15 hours ago

Bitcoin’s Surge in Active Addresses Signals Crucial Turning Point

On-chain activity in Bitcoin is at its highest since December 2024, as measured by the…

15 hours ago

Arbitrum Economy Shows Strong Growth as Q1 2025 Numbers Surprise Investors

Arbitrum, one of the leading Layer 2 (L2) solutions for Ethereum, is growing rapidly. The…

15 hours ago