Ripple collaborated with one of the world’s largest remittance firm MoneyGram to deploy its cross border payment technology. According to regulatory filings with the US SEC, Ripple gave $2.4 million in Q3 and an additional $8.9 million in Q4 of the last year to help MoneyGram deploy Ripple’s technology for cross-border payments.
MoneyGram plans to use Ripple’s technology to more corridors.
One of the world’s leading remittance firms entered into a strategic partnership with the blockchain firm Ripple. Since then, MoneyGram has expanded the use of Ripple’s technology in cross-border payments in return for capital from Ripple. MoneyGram has shown interest in using Ripple’s technology to more corridors in the coming time. The remittance company disclosed that it utilizes various Ripple products, including its On-Demand Liquidity product that runs on XRP.
Filings do not state what Ripple’s $11 million is for
Currently, MoneyGram is using Ripple’s ODL technology in five corridors, including the Mexican Peso, Philippine Peso, and the Australian dollar. However, the remittance firm plans to spread the technology to as many corridors as possible in the near future. MoneyGram expects that partnership will reduce their working capital needs and generate additional earnings and cash flow.
The regulatory filings do not state what Ripple’s $11 million is for. However, the company is compensated by Ripple for developing and bringing liquidity to foreign exchange, facilitated by Ripple’s blockchain.