New financial filings show Ripple sent money transfer giant MoneyGram millions of dollars worth of XRP in the third quarter of this year.
MoneyGram received $9.3 million in Q3 from the San Francisco-based payments startup in “market development fees.” MoneyGram also says it witnessed a net benefit of $8.9 after $400,000 in “transaction and trading expenses.”
The market development fees are sent in XRP, which MoneyGram says it immediately converts into cash.
The remittance firm first categorized the Ripple market development fees as revenue, but – after a consultation with the Securities and Exchange Commission (SEC) – it now uses the fees to offset expenses, according to a MoneyGram press release.
In an SEC filing, MoneyGram explained why it receives compensation in the form of XRP from Ripple.
“The Company is compensated by Ripple in XRP for developing and bringing liquidity to foreign exchange markets, facilitated by the ODL platform, and providing a reliable level of foreign exchange trading activity. We refer to this compensation as market development fees.”
In the second quarter of this year, the payments titan reported that it received $15.1 million worth of XRP in market development fees with a net benefit of $8.8 million after $6.3 million in expenses related to transactions and trading.
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