MoneyGram will pilot the use of XRP in payment flows through Ripple's xRapid, solution for on-demand liquidity. Newer blockchain technologies have the potential to revolutionize this process and optimize capital deployment.
"This is very much part of Ripple's strategy to partner not just with banks but also with money transfer networks and emerging providers, such as mobile wallets", said Zil Bareisis, analyst at Celent.
In a statement, Ripple CEO Brad Garlinghouse described the MoneyGram tie-up as a strategic one, and said it would demonstrate XRP's ability to lower costs for money transfers between friends and families.
There are miles to go before a cryptocurrency-based system replaces correspondent banking, but MoneyGram's pilot looks like a step toward a world of faster, simpler, cheaper worldwide payments. The average transaction time for XRP is 2 to 3 seconds with other top digital assets ranging from 15 minutes to an hour for a payment transaction.
According to a press release, MoneyGram will test Ripple's xRapid service due to its claimed speed and cost efficiency.
Could that be the gas that will fuel Ripple back into the leading shoes?
Following the announcement of this news, Ripple has once again begun to grow it's price. This led to a major pump in the price of the currency as Ripple prices raced to nearly $2.2 from $1.5.
People thought the same thing happened to Bitcoin Cash could happen with Ripple if they didn't catch it before the Coinbase listing, resulting in an enormous burst of its token's XRP price.
The company's shares gained the most it had in 10 months as it announced plans to work with the blockchain startup to test its digital currency for the objective of moving funds.
In June 2017 Ripple's chief executive Brad Garlinghouse attempted to terminate the options contract through an email to R3's chief executive David Rutter, according to the lawsuit.