Payments Giant MoneyGram Goes Crypto, Launches Ripple’s XRP-Based Remittance Solution in Four New Corridors
The CEO of payments giant MoneyGram says the company is expanding its use of Ripple’s XRP-based On-Demand Liquidity (ODL) into four new corridors.
In a new interview at Swell 2019, Alex Holmes talks about the company’s early experience with the cross-border payments product formerly known as xRapid.
“We’re pushing today about 10% of our volume that we normally do to Mexico through the ODL platform. It’s working extremely well.
We’ve now opened into four new corridors that we’re beginning to scale. And I think that those will continue to ramp in the coming weeks and months…
Literally having that On-Demand Liquidity, knowing how many pesos have moved at what time of day and what the peso rate was and actually buying your pesos at that same time, landing in Mexico for the purposes of settling is really pretty phenomenal. It’s pretty amazing.”
ODL relies on crypto exchanges to accept fiat from financial institutions and send the equivalent value in XRP across borders, where it is then converted back to fiat. The process is designed to complete in minutes, with the assets exposed to XRP for only a matter of seconds.
Holmes says the solution is capable of moving billions of dollars in an instant.
“What I love about ODL is that we’re completely at the forefront of this technology…
We’re able to settle billions of dollars in seconds. The magic really comes from pairing MoneyGram transactions with Ripple’s ODL.”
Ripple and MoneyGram partnered back in June. Ripple paid $30 million investment to acquire an 8% to 10% stake in the company. The partnership is emerging as an example of a legacy platform collaborating with a fintech to leverage the speed and convenience of cryptocurrencies.
MoneyGram says it’s now connected to more than two billion accounts around the world, including bank accounts, virtual accounts and mobile wallets.
In its earnings report, the company says it earned $324.6 million in total revenue in the third quarter of this year.
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