MoneyGram expands Ripple partnership with $11.3M

by in Cryptocurrency News

MoneyGram and Ripple partnership

MoneyGram money transfer service received $ 11.3 million from fintech startup Ripple during the second half of last year. It is reported by CoinDesk concerning reporting to the US Securities and Exchange Commission (SEC).

The funds from the California startup came in two tranches: $ 2.4 million in the III quarter and $ 8.9 million in the IV.

“As the premier money transfer service to leverage the power of blockchain on a large scale, MoneyGram continued to expand its strategic partnership with Ripple,” the press release said.

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The new document does not indicate where the $ 11 million investment was directed. However, the report for the third quarter says that the funds will allow MoneyGram to more actively use the On-Demand Liquidity (ODL, formerly known as xRapid) solution for cross-border payments:

“The company expects this large-scale partnership to reduce its working capital needs and enable it to generate additional cash flows and profits.”

Late last year, MoneyGram announced the start of the active use of ODL based on the Ripple XRP token. According to company head Alex Holmes, ODL processes 10% of transfers between the US and Mexico.