Ripple, crypto’s cross-border global payment solution, has partnered up with one of the biggest money transmission network, MoneyGram. This might indeed be the step ahead for crypto in achieving its set goal of breaking borders and barriers by swift money transfer mechanisms. The partnership, as reported, gives MoneyGram the opportunity to withdraw $50 million from Ripple in exchange for equity. The partnership span has been set at 2 years.
Brad Garlinghouse, CEO of Ripple, seemed pretty happy with the partnership as MoneyGram is undoubtedly one of the biggest money transmission network in the world and this institutional partnership might prove to be a step towards the breakthrough that cryptos require in terms of mass adoption. The CEO expressed his positive hopes regarding the project:
— Brad Garlinghouse (@bgarlinghouse) June 17, 2019
Further shedding light on the potential of the project, Brad said:
“This strategic partnership will enable MoneyGram to greatly improve its operations and enable millions of people around the world to benefit from its improved efficiency. This is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies”
This partnership would promote xRapid product, which is a means of transferring money with a minimal fee and quick transaction times. This product utilizes speeds and the transaction fee of XRP, which as compared to the traditional transfer mechanisms are way better.
The conventional methods usually take $30 for transferring while they take 15 minutes to an hour to process the transaction. As opposed to this, xRapid would provide a platform where the sending currency would be changed to XRP and upon reaching the other side, it would turn to the original currency.
This method of transferring money would only utilize XRP’s potential of payments, minimizing transaction times and fees, while also keeping the original currency. Accepting the importance of involving technologies for the betterment of economies and payments, CEO of MoneyGram Alex Holmes stated:
“As the payments industry evolves and matures, it’s imperative that we continue to improve our platform and provide the most effective solution to get funds from point A to point B. Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management.”
The purpose of crypto as a barrier breaker seems to be fulfilled and a partnership with a company this big might actually be the breakthrough for mass adoption. The CEO believes that products like these could actually revolutionize the banking sector. Although the general perception is that cryptos and banks are arch enemies, but if utilized in a useful manner, such as the project mentioned above, payments could be revolutionized. Stating this narrative, Brad Garlinghouse stated:
I don’t think banks… governments will go away. Banks are applying a very important regulatory framework that I actually think is important for society. I personally believe that banks will continue to serve that role, they’re good at it… I think this is a new set of technologies that they can benefit from to grow their business.
This might be the first time Ripple has partnered with an institution this big that could actually revolutionize payments, but in the past, Ripple has played a fair role in bringing financial institutions on the same page as them.
Due to their cost efficiency, scalability, speed and security, RippleNet, Ripple’s global payment network, has been able to garner the attention of hundreds of financial institutions such as Euro Exim Bank, American Express, ConnectPay, Standard Chartered and Ahli Bank of Kuwait, using the blockchain technology for the right purposes.
These kind of blockchain projects might pose a threat to banking systems, but if blockchain tech can provide benefits like speed, security, low costs and scalability between banks, this could revolutionize the way how payments are made and could save a lot of time and investment for the banks.