Moneygram—the second-largest money transfer company in the world (after Western Union)—reported an $11.3 million profit, explaining that the use of Ripple’s tools, like its ODL solution,—which “reduced the cost and delivery time for cross-border transfers”—as well as XRP—which allows the exchange of US dollars—reduced costs and capital needs, generated profits and allowed for additional cash flows.
This was reported in its Annual Report to the U.S. Securities and Exchange Commission.
On 25 November, Ripple invested $50 million in MoneyGram—its largest investment in a company so far—in exchange for equity. This partnership agreement gave them a 10% stake, but without a seat on the board of directors.
Ripple is making its way into the Asian market thanks to a partnership with Deemoney—a company specialized in digital cross-border money transfers—which will process payments made from South Korea, Indonesia, Singapore, Israel, and the Middle East and Gulf among others, implementing technological and financial improvements, to facilitate the speed and economy wanted at the time of processing payments.
The National Bank of Fujairah PJSC (NBF), which has 18 branches across the United Arab Emirates (UAE), also announced it plans to use RippleNet’s platform to offer its clients a cheaper and more transparent way to send remittances to India, facilitating faster and more traceable payments, through this blockchain-based solution.
The volatility that cryptocurrencies have experienced, brought about by the Covid-19 pandemic, is changing the opinion that many central banks had about them, showing the number of potential uses it can provide for the global economic recovery.