It’s not a secret that MoneyGram is using XRP as well as a number of Ripple based blockchain products. In case you don’t know, MoneyGram is an international money transfer service provider based out of the United States. MoneyGram is an international brand, which I guess makes international money transfer far easier right? Traditionally FIAT based, MoneyGram have expressed a huge amount of interest in blockchain technology as they have seen just how powerful blockchains like Ripple can be when it comes to remittance payments and international money transfer.
This is exciting, because now we know that MoneyGram have an interest in using XRP, the token native to the Ripple network. This is great news for the adoption of XRP given that MoneyGram is such a huge and widely known international brand.
So, why are they using XRP?
According to Cryptonews:
“U.S.-based major money transfer company MoneyGram said it has already started to use Ripple's xRapid product that is aimed at minimizing liquidity costs and is powered by Ripple's XRP cryptocurrency. ‘We are using XRapid to buy a portion of our currency needs in major receive markets’, MoneyGram spokesperson told Cryptonews. ‘We expect to expand into several major currencies over the two-year life of the commercial agreement [with Ripple]. While we are in the process of developing markets, we cannot disclose which currencies we are buying and our volume of trading activity.’ According to the company, its money transfer revenue was USD 282.2 million in the second quarter of this year, or 14% less than in the same period of 2018.”
So, it seems that MoneyGram are making the most of XRP’s rapid transfer rates and efficiency in order to purchase the currencies the company needs in order to be able to provide it’s international money transfer service. If this is true then this is huge news not just for XRP but for the cryptocurrency community altogether. If this is the case, other rival companies and banks could look towards doing the same thing. We don’t need to tell you this, but if traditional banks and large financial companies start holding more cryptocurrencies in order to diversify and improve their services, the markets will see a huge wave of international investment. It’s this kind of investment that promises to sky rocket prices. Is MoneyGram the first cog in the machine for worldwide XRP adoption?