Moneygram Confirms Partnership with Ripple, XRP Price likely to Surge

Cryptocurrency markets are facing big losses

Cryptocurrency markets are facing big losses

Blockchain company Ripple announced on Thursday that it had finalised an agreement with Texan funds transfer giant MoneyGram that would see Ripple's digital currency XRP, which had soared in value since the beginning of December despite questions regarding its practical uses, be used to provide liquidity to financial institutions.

As per a press release, MoneyGram will test the use of XRP via Ripple's xRapid payment network, which it claims increases speed and reduces the costs of transferring money.

Industry data shows that the platform - which takes two to three seconds to process a standard payment - charges "fractions of a penny" in transaction fees, maximising profits for financial institutions. In addition, XRP boasts a lightning fast transaction time of 2-3 seconds, while Bitcoin transactions are known for taking a notoriously long time to go through.

Brad Garlinghouse, CEO of Ripple, described this collaboration with MoneyGram as a strategic one.

Money transfer companies, like MoneyGram, allow people to safely and efficiently send cross-border payments to friends, families and business partners.

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Garlinghouse added that, by using Ripple's digital asset, MoneyGram would be able to move money "as quickly as information".

And to be clear: @MoneyGram announcement is one step in a marathon ahead to truly make $XRP the global liquidity solution for payment providers and banks. By collaborating with Ripple, MoneyGram gets to dip its toe with the emerging blockchain technology and probably can also have an early edge in the market, with its other competitors.

"Ripple is at the forefront of blockchain technology", Alex Holmes, chief executive officer of MoneyGram, said in the statement. Ripple most recently announced it would be teaming up with Amex and Santander for a blockchain pilot to speed up payments between the USA and the United Kingdom.

XRP was seen surging on the news, and flew nearly 15 percent higher to $2.22 at 9:55 a.m. ET, according to Coinmarketcap data. The members of the Ripple's consortium includes many big banks and payment companies like American Express, UBS and Santander.

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