Ripple and MoneyGram are probably one of the biggest collaborations between a traditional financial service provider and a blockchain-based entity. MoneyGram is known to implement Ripple’s On-demand Liquidity product for faster remittance operations and is now partnering with Sri Lanka’s leading fund’s transfer platform.
According to a local report, MoneyGram is joining hands with MMBL Money Transfer, the leader in the Sri Lankan remittance market, to easily perform cross-border transactions from anywhere around the globe.
MoneyGram’s head of the Asia Pacific and South Asia, Anil Kapur, stated:
“As MoneyGram continues to focus on investing in key receive markets, we’re excited to expand our presence in one of the key markets in South Asia by partnering with MMBL Money Transfer in Sri Lanka.”
Kapur added, that one of the benefits of being MoneyGram’s partner is that MMBL Money Transfer clients will be able to receive transfers at night and on weekends as well.
MMBL Money Transfer has over 2000 cash outlets and payout locations, including banks and retail outlets and non-banking institutions, that’ll further open up new opportunities for MoneyGram’s expansion to millions of new users in Sri Lanka.
Where does Ripple come in?
MoneyGram has been using Ripple’s ODL in its daily operations via RippleNet across several jurisdictions.
The company’s CEO Alex Holmes announced at the Swell 2019 conference that Moneygram has been moving 10% of its Mexican peso foreign exchange transaction volume via ODL.
Meanwhile, Ripple has had close financial ties with the remittance giant since a $30 million investment in the company’s equity and a commercial agreement for cross-border settlement using digital assets early in 2019.
Ripple even tightened the partnership with another investment of $20 million raising its stake in Moneygram to 9.95%, while obtaining rights to increase its stake to 15% in the future, a filing with the U.S Securities and Exchange Commission confirmed.
Recently, the remittance giant received $15.1 million in XRP once again, from Ripple Labs, marked as “market development fee” in the company’s quarterly report, and is supposedly meant to provide liquidity to Ripple’s ODL solution.
This was one of many incentives MoneyGram has received, with $16.6 million in XRP received in the first quarter of 2020 itself. A total of $31.7 million has been given via these incentives.
With its XRP injections, Ripple set up ODL corridors together with MoneyGram in Europe, Mexico, Philippines, and Australia.
All the factors combined; both the companies seem to be benefiting from the partnership, and every new expansion presents new opportunities for Ripple and XRP.