Ripple: MoneyGram to Take a look at Its Digital Coin for Funds

Ripple: MoneyGram to Take a look at Its Digital Coin for Funds

Ripple: MoneyGram to Take a look at Its Digital Coin for Funds

US money transfer giant is teaming up with blockchain firm Ripple to test payments using the latter's cryptocurrency.

The money transfer company will access and use the token through xRapid, Ripple's on-demand liquidity product.

The Ripple official twitter handle has tweeted the news that there will be more payment companies like Moneygram joining the usage of XRP in 2018.

The counterargument to the suggestion that financial institutions won't use XRP and, in turn, will develop their own cryptocurrency to facilitate payment flow within the xRapid platform, is that it's far easier and cheaper for them to adopt XRP, given its native capabilities within the platform in question. The firm also boasts average transaction times for XRP of two to three seconds.

"The inefficiencies of global payments don't just affect banks, they also affect institutions like MoneyGram", Ripple CEO Brad Garlinghouse said in a statement Thursday.

The company today said it has signed a deal with MoneyGram International try out XRP as a way to facilitate international transfers.

"Every day blockchain technology is changing the norm and encouraging innovation".

"We are excited about this pilot and a long-term strategic partnership with MoneyGram". By collaborating with Ripple, MoneyGram gets to dip its toe with the emerging blockchain technology and probably can also have an early edge in the market, with its other competitors.

The team-up comes after both Ripple and MoneyGram made headlines this month, the latter for the fall through of its much anticipated acquisition by Chinese fintech giant Ant Financial: the operator of popular mobile payment service Alipay. Ripple most recently announced it would be teaming up with Amex and Santander for a blockchain pilot to speed up payments between the US and the United Kingdom.

Ripple's price dropped about 20% when Coinbase announced that they're not keen on adding any new coins at this time.

XRP was seen surging on the news, and flew nearly 15 percent higher to $2.22 at 9:55 a.m. ET, according to Coinmarketcap data. In November, the firm with American Express and Santander on a blockchain pilot to speed up cross-border payments between the United Kingdom and the U.S.

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