Money transfer company MoneyGram International joined Ripple’s enterprise blockchain network RippleNet to enable faster and secure cross-border settlements for its customers.
The move follows an initial strategic investment of $30 million by blockchain firm Ripple in exchange for MoneyGram equity.
The partnership will be for an initial term of two years, during which Ripple may invest up to an additional $20 million.
MoneyGram will utilize Ripple’s xRapid product, leveraging XRP in foreign exchange settlement as part of MoneyGram’s cross-border payment process. XRP, Ripple’s native digital asset, will act as a real-time bridge between the sending and receiving currencies.
RippleNet is expected to improve MoneyGram’s settlement of cross-border payments by increasing efficiency and reducing operating cost.
xRapid claims to settle funds instantly of funds from US dollars to destination currencies on a 24/7 basis.
MoneyGram currently relies on traditional foreign exchange markets to meet its settlement obligations, which require advance purchases of most currencies.
Initially, Ripple had partnered MoneyGram in January 2018 to pilot XRP in their payment flows and to explore MoneyGram’s integration into Ripple’s ecosystem.