Ripple’s XRP rose 13 percent to $13.38 on Thursday after MoneyGram made the announcement to use its XRP token for international payments. Shares of the money-transfer MoneyGram International Inc also jumped 10.5 percent after the the company said it partnered with blockchain firm and bitcoin-rival Ripple. Ripple is provider of the leading enterprise blockchain solution for payments. As part of the partnership, both companies will also explore MoneyGram’s integration into Ripple’s ecosystem through xVia.
“The inefficiencies of global payments don’t just affect banks, they also affect institutions like MoneyGram. Money transfer companies are incredibly important because they help people get money to their friends and loved ones,” said Brad Garlinghouse, CEO of Ripple. “We are excited about this pilot and a long-term strategic partnership with MoneyGram. By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information.”
For MoneyGram, the second largest money transfer company in the world, this strategic partnership will allow them to understand how blockchain technology and XRP can improve the efficiency of their global treasury operations and consumer experience.
Alex Holmes, Chief Executive Officer of MoneyGram, said, “Every day blockchain technology is changing the norm and encouraging innovation. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid. We’re hopeful it will increase efficiency and improve services to MoneyGram’s customers.”
Ripple has risen 31,000 percent over the past year, overshadowing bitcoin’s 1,200 percent increase. It was created by the founder of bitcoin exchange Mt Gox. Ripple provides one frictionless experience to send money globally using the power of blockchain. By joining Ripple’s growing, global network, financial institutions can process their customers’ payments anywhere in the world instantly, reliably and cost-effectively. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets.
With offices in San Francisco, New York, London, Luxembourg, Mumbai, Singapore and Sydney, Ripple has more than 100 customers around the world.