Ripple and MoneyGram Test XRP Currency Transfers
A big win for Ripple has been announced as they are working with the money transfer service, MoneyGram. This comes on the heels of an exchange between New York Times journalist Nathaniel Popper and Ripple CEO Brad Garlinghouse. Popper stated that the liquidity product offered by Ripple, xRapid, has gained no interest by financial institutions. Garlinghouse followed up the claim by stating that multiple banks were running tests with xRapid and very pleased by the results. While Ripple has reported a partnership with American Express, the announcement of the partnership with MoneyGram is the first actual proof of integration with xRapid and money services.
xRapid has been an intriguing project to many as it has the possibility to be used in a more practical setting thanks to the success of XRP and the opportunity for liquidity. Ripple’s XRP has showcased quick transaction speed and small to nonexistent fee. This puts it above the likes of Bitcoin which has fees of up to $30 and transactions can take up to an hour to be processed. The announcement is coming at an ideal time where Ripple has struggled. They briefly became the second largest crypto but since have seen a significant fall since. The partnership could possibly set them up for a bounceback.
In a time when many banks are looking at the possibility of blockchain, it sets Ripple up for a more widespread use. Garlinghouse also said that the use of XRP would allow for firms to free up capital as holdings would not be in cash. Still, critics claim that XRP is not necessary to carry out transactions.
The partnership is ideal for MoneyGram to hold its place in the money transfer market. That market has become more saturated with low cost options. The partnership will help differentiate MoneyGram and draw users interested in sending XRP. MoneyGram CEO, Alex Holmes, was looking forward to this addition,
Every day blockchain technology is changing the norm and encouraging innovation. 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.