Brad Garlinghouse (CEO of Ripple) has said in June that the $30 million partnership the company had with MoneyGram have given it adequate impetus to exploit multiple investments and acquisitions.
The deal with the second-largest remittances company globally MoneyGram, had led to Ripple purchasing a 10% stake in the firm, which the firm hopes to further increase to $20 million within the next two years according to Aug. 9 Yahoo! Finance report.
Moneygram embraces xRapid
Earlier this month, during the second-quarter earnings call of the company, Alex Holmes (Moneygram CEO) clearly stated that on Aug 3 is when MoneyGram would start to use Ripple’s xRapid liquidity product.
A lot of Ripple’s other clients, like American Express, Standard Chartered, and Santander prefer to use XRapid. Reason being, that the product relies on XRP token to facilitate instant money settlement sent in one currency into another destination currency.
Garlinghouse snubbed — during his interview— the notion going around that Ripple might have perhaps forked out a premium on Moneygram shares to pressurize the firm to embrace the technology:
‘“I wouldn’t characterize it as an inducement […] we’re getting more and more customers to sign up and we’re seeing that value. If we want to accelerate that, we have the option of doing things that might be perceived and characterized by some as an inducement.”
Garlinghouse revealed that given the Thomas H. Lee Partners’ (private equity firm) reluctance to sell at market values, Ripple had to pay a high price for the deal. In the 12 months before the partnership deal, Moneygram shares dropped almost 80% but thereafter escalated by 168%.
‘A big deal’
The company’s partnership with Moneygram is a nice example of the first crypto asset case use in production at scale, Garlinghouse claimed, adding:
“This is a big deal. If I were betting now, a year from now the Moneygram deal will have a more consequential impact on the crypto markets than the Libra white paper.”
Between Q1 and Q2 2019, xRapid rose by 170%, even making the CEO to forecast that it would hit a volume over $1 billion come 2020.
With over 200 contracts with global clients already under its belt, the company hopes to sign an additional 100 new contracts this year — xRapid and XRP to cover 20% of the signings. To do that, Garlinhouse has stated that the company is now signing on two new financial institutions per week.