Home News Ripple's xRapid Gets Platform: Company Pays $30M for MoneyGram Partnership

Ripple’s xRapid Gets Platform: Company Pays $30M for MoneyGram Partnership

TL;DR: Payment platform MoneyGram and cryptocurrency project Ripple (XRP) announced a joint partnership. For $30 million, Ripple will acquire nearly 10% of MoneyGram, and reports are suggesting the move is a way to showcase its transfer of XRP protocol, xRapid, which it claims to make borderless transactions more frictionless. The press release is also timed just hours before Facebook is expected to reveal its white paper, laying out a payment product cryptocurrency-related experts suggest could make Ripple irrelevant.  

Ripple’s X-Rapid Gets Platform: Company Pays $30M for MoneyGram Partners

“An industry defining milestone,” Ripple CEO Brad Garlinghouse tweeted, “together, @MoneyGram and @Ripple are solving the challenges with cross-border payments using the speed and efficiency of #XRP.” The deal essentially combines one of the world’s best known traditional money transfer businesses with one of crypto’s top coins by market capitalization.

Described as a “strategic partnership with Ripple,” MoneyGram explained the company will “utilize Ripple’s xRapid product, leveraging XRP in foreign exchange settlement as part of MoneyGram’s cross-border payment process. The partnership supports the companies’ shared goal of improving the settlement of cross-border payments by increasing efficiency and reducing cost through RippleNet.”

The present deal is for two years, and includes cash, common stock, and a warrant to purchase more. “Ripple purchased the newly-issued common stock (including the shares underlying the warrant) from MoneyGram at $4.10 per share,” they detailed, “which represents a significant premium to MoneyGram’s current market price. In addition, at MoneyGram’s election, Ripple may fund additional purchases of common stock or warrants up to $20 million at a minimum price of $4.10 per share,” bringing the potential grand total to a whopping $50 million.

Some insiders are smarting at the notice’s timing, and about how it coincided with tomorrow’s expected rollout of Facebook’s rumored Libra project. Facebook Coin, as CoinSpice has dubbed it due to exactly zero formal confirmation from the social media giant, is thought to be a stablecoin pegged to a basket of fiat currencies. Libra’s payment rail are its many users (more than 2 billion) and other social media holdings, from Instagram to WhatsApp. Without formal KYC, at least in theory, Facebook might be an easier, more go-to choice for the average remitter. Whatever the case, Garlinghouse also sweetened the press release with a 2,000,000 XRP airdrop competition.

DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH. 

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