Californian FinTech company Ripple announced on June 17 that it entered into a strategic partnership with MoneyGram, one of the world's largest money transfer companies. Here is how Ripple's blog post explained the deal:
Through this partnership, which will have an initial term of two years, Ripple would become MoneyGram’s key partner for cross-border payment and foreign exchange settlement using digital assets. In conjunction with the partnership, Ripple has agreed to provide a capital commitment to MoneyGram, which enables the company to draw up to $50 million in exchange for equity over a two-year period.
Holmes, MoneyGram's CEO, said at the time:
Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management.
Then, on August 2, during his company's Q2 2019 Earnings Call, Holmes said that MoneyGram had started "transacting on the Ripple xRapid platform", and that "all signs point to this being a tremendously beneficial relationship for all parties involved."
He then had this to say about the real-world performance of xRapid:
We're literally settling currencies in second, and to quote my friend Larry, this is really cool.
During MoneyGram's Q3 2019 Earnings Call, which took place on November 1, once again, the MoneyGram CEO had some exciting news to report about his company's partnership with Ripple.
He started by saying:
Today, we've integrated Ripple onto our standard Treasury process to execute foreign currency trades 24/7. Over the quarter, we've continued to increase our usage of Ripple’s on-demand liquidity product for a portion of our daily funding needs in Mexico.
He then went on to say:
As a result of this success, we're working to expand the partnership to new corridors before the end of the year. Furthermore, we're also in the process of developing a roadmap on potential new used cases to improve our digital payments offering. Though this will take some time to achieve, we believe that we’ll lead the industry in accomplishing this vision and that our partnership with Ripple will be a competitive differentiator in the months and years ahead...
In its "2019 Third Quarter Results" report, MoneyGram used the following diagram to illustrate its relationship with Ripple:
Featured Image and Diagram Courtesy of MoneyGram