Wednesday, April 24, 2024

MoneyGram using Ripple’s xRapid – A win-win for both?

After a $30 million partnership with Ripple this June, MoneyGram officially started using its liquidity product i.e. xRapid, last week. It is considered a huge win-win situation for both the parties. A report has shown that the shares of MoneyGram dropped by 80% prior to this deal. But they rapidly went high up by 168% after buying xRapid. It was mainly aimed at reducing the liquidity costs and helping their venture in long term. Reduce costs would lead to increased profit. It is indeed a major break-through last week which will leave a consequential impact in the coming years.

  • How big is it for xRapid?

Huge! If that’s the right word for it. Reports have clearly shown that xRapid’s volume enhanced by 170% in first two quarters. Nearly 200 clients are already under Ripple’s belt. Moreover, they are supposedly signing two financial institutions per week. This means that nearly 100 contracts will be signed this year. Garlinhouse claimed that out of those 100 contracts, xRapid or XRP will involve nearly 20% of it. XRP, if continues in the same manner will reach a staggering volume of nearly $1 billion. So, it all seems to be going in the right direction for Ripple and xRapid right now. All the calculations are done in the real time and would make an instrument difference in the years to come.

  • What will MoneyGram exactly use it for?

xRapid is mostly used to reduce the liquidity costs and help the wobbling ventures. MoneyGram, itself is the second largest money transfer company, they are definitely looking for an increase in their profit. But, what else? In an official statement, MoneyGram’s spokesperson claimed that it will be used to buy a portion of currency needs in major receive markets. Moreover, MoneyGram looks forward to develop in several major currencies in the two year contract period with Ripple. They are looking to develop the markets further and gain competitive edge over others.

  • How successful will this partnership be in real terms?

So far, so good. Currently, the signs look very bright for it to go as one of the best deals. With a definite win-win situation for both, it will definitely reap desired results on both ends. As far as the cryptocurrency market as a whole is concerned, it can be extremely impactful. Ripple’s CEO even went onto say that this deal will go down much better than that of Libra White Paper. This is surely some statement to make. One can never set a benchmark, especially in the case of cryptocurrencies to decide which a better deal is. Only time can and will decide. Let’s just leave it with the best hope as of now.

Monesh Kumar
Monesh Kumar
Monesh Kumar is a cryptocurrency and blockchain enthusiast. He trades cryptocurrencies and holds some but he prefers holding Bitcoin, Ethereum & Cardano.

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