MoneyGram has made millions from selling Ripple's XRP
In its recent annual report filed with the US Securities and Exchange Commission, MoneyGram reports earnings of 11, $ 3 million as a result of his Ripple partnership. Ripple Labs pays the company as an incentive to use RippleNet in their company.
Ripple revenue is growing fast
Although MoneyGram's total revenue continues to decline, it was clearly positive for the company to welcome Ripple. It started using RippleNet's on-demand liquidity (ODL) in the second quarter of last year, which has been very successful. The report states:
The company is compensated by Ripple in XRP for the fact that, facilitated by the ODL platform, it has developed and brought liquidity in the currency markets and brought them to a reliable level Offers foreign exchange trading activities.
It is noteworthy that of the 11, $ 3 million received from Ripple came in $ 8.9 million in the fourth quarter. Given the overall growth of the Ripple platform, this number has probably increased even more in the year 2020.
This activity is positive evidence that Ripple Labs is trying to use all the necessary means to get financial institutions to use its service. According to reports, it also pays other partner institutions.
Transfer companies will have to adjust
MoneyGram's hug from Ripple shows that the company recognizes the paradigm shift in the global financial sector. Blockchain assets are increasingly playing a role in moving money around the world and threatening to make traditional money transfer providers redundant.
Ripple Labs was an early runaway in the crypto space due to the aggressive attempt to work with fiat-based financial institutions. Still, CEO Brad Garlinghouse has repeatedly asserted that cryptocurrencies should best be used as a complement to the old economy, at least for now. In other words, Garlinghouse does not see that the central banks and the money they shape will disappear in the near future.
At the moment, both Ripple and MoneyGram are benefiting from their alliance. Nevertheless, both companies are undoubtedly aware that much larger changes will soon have an enormous impact on their two core businesses.
Proof of text: bitcoinist
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