If you thought Ripple was down and out after going from the highs of $3 down to the lows of $1 and change, then think again. MoneyGram is here for the rescue.
On a day when news from South Korea sent ripples, pun always intended, through the crypto sphere, wiping some $200 billion of market capitalization, one coin stood out. When most other big coins traded down, Ripple was up and above.
And that’s because the most surprising coin at the start of 2018 has good news to report.
At your service
Ripple made official a deal with the MoneyGram service, confirming that one of the leading money transfer brands in the globe will be making use of its technology for cross-border payments. The Dallas-based MoneyGram operates in more than 200 countries, with a global network of 347,000 agent offices.
And it will allow customers to send payments with the XRP token instead of fiat currencies.
Like the dollar.
MoneyGram will use the company’s on-demand liquidity product xRapid, allowing for real-time settlement through the Ripple coin. Which it says gives financial institutions the ability to unlock liquidity and access multiple corridors with one pre-funded originating account.
Fancy words, but basically this is one of the three money transfer firms that will announce use of Ripple this year, as the company itself recently put.
Shares of MoneyGram rose 6% over the new, while Ripple quickly stated trading above the $2 mark.
If there’s one thing you have to give credit to Ripple for, it’s that the digital coin has had a steady rise, going from a relatively unknown cryptocurrency to a top-three behind heavyweights Bitcoin and Ethereum.
And its ascent has been built on news developments like this one.
It announced the signing of a pilot program between two South Korean banks, and a consortium of 61 Japanese banks not too long ago.
Major venture capital firms and banks have also invested in the company, including names like Google Ventures and Standard Chartered Bank. It may not exactly be decentralized, unlike many of the other cryptocurrencies, but these brands are what give Ripple its sheen.
Headlines like these.
Of course, the fact that Ripple has shown that they facilitate double-digit million dollars’ worth of transactions in seconds, at fraction of the cost of what it takes Bitcoin is also paving the way for mainstream acceptance of the cryptocurrency.
Not everything is getting acceptance in the geopolitical climate of today. MoneyGram recently made headlines after it emerged that the company’s attempt to sell to Ant Financial, a unit of Alibaba, the Chinese retail giant, were banned by the US government.
The money transfer firm said, at that time, that it was unable to obtain the required approval from the transaction from the Committee of Foreign Investment in the United States, better known as CFIUS.
That ban was seen as a setback for the company, which is a popular service in emerging markets like China and Brazil. Expats there often use MoneyGram to repatriate cash back to family members at home, or to pay bills.
They can now do so in XRP.