Brad Garlinghouse, the CEO of Ripple, considers that the new partnership with MoneyGram is expected to have a “big impact” on the xRapid product. Ripple announced on June 17 that they signed a strategic partnership with the money transfer company MoneyGram in order to use XRP for cross border payments.
MoneyGram’s Partnership To Have A Positive Impact on xRapid
Ripple and MoneyGram have entered a new partnership that will allow the large money transfer company to perform cross border payments and transactions using the xRapid product. Ripple uses the XRP digital currency on the xRapid platform in order to be able to provide liquidity on demand to companies that request it, including MoneyGram.
During a conversation with Bloomberg TV, Ripple CEO Brad Garlinghouse commented:
“The deal is a big step for Ripple, but I think it’s even a bigger step for the overall industry. There’s been a lot of excitement around what blockchain and digital assets and crypto can mean for the industry and I think it’s the reason why players Facebook are diving in also. But we haven’t yet seen much beyond experimentation.”
He went on saying that he believes they are the market leaders because they have matured aggressively and they are solving real problems for real customers. MoneyGram is also the second largest global remittance company and they are going to have a big impact on the services offered.
At the moment, MoneyGram owns 5 percent of the global remittance market, according to a recent report released by the Financial Times. This is why Ripple is working side by side with this company and is trying to help it remain competitive in the market.
Ripple is also going to buy a 10% stake in MoneyGram at $4.10 a share. Moreover, Garlinghouse said that the company is also focused on growing the xRapid product and expand the number of payment routes available on the platform. At the moment, the firm was able to open just one xRapid route that links Mexico and the Philippines.
At the same time, Garlinghouse talked about Facebook’s crypto initiative and said that as they are focused on offering services to consumer products while Ripple is working on enterprise solutions.
“It will be really interesting to see what part of the market they focus on,” Garlinghouse said. “David Marcus has been an incredible leader and given his experience at PayPal, I expect we’ll see them do something very consumer-y oriented.”
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