Money transfer system MoneyGram has started to use Ripple's xRapid tech to make cross-border payments.
According to Alex Holmes, CEO of MoneyGram, the first xRapid transactions were made last week. Holmes has highlighted that thanks to xRapid technology, this type of payments can now be executed in a few seconds. He has said:
"Ripple will become our key partner for cross-border settlement using digital assets."
MoneyGram has not disclosed any information about the countries in which it has already used xRapid. The company CEO has stressed that the cooperation with Ripple will help improve the ability to transfer money around the world and can provide additional benefits to MoneyGram by reducing costs.
The xRapid technology is based on the XRP token and allows users to send funds in one currency and instantly perform the settlement in another currency.
Holmes has confirmed that Ripple has also purchased MoneyGram shares at $4.1 per share even as they traded at $1.45. The amount of the investment has not been disclosed, but some media have suggested that it could be $30 million and the obligation to buy another $20 million in shares if necessary.
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