More than a year after joining forces with Ripple, Adam Holmes, CEO of U.S.-based money transfer giant, MoneyGram, told CNN in an interview today that the partnership has evolved and is pushing boundaries.
In June 2019, the companies announced a strategic partnership that would see Ripple shell out a $50 million capital commitment to MoneyGram. In turn, the money transfer company would adopt Ripple’s xRapid product while leveraging XRP as part of its cross-border remittance process.
The partners share a common goal of improving cross-border settlements by reducing cost and increasing efficiency through RippleNet. Moneygram has been using Ripple’s product for settlement treasury management and its FX management.
In the interview, Holmes said that the idea behind the 18-month old partnership with Ripple was to “push innovation” and see how MoneyGram could help in the “pioneering the expansion and global utilization of blockchain.”
According to him, the ability to send money across borders is affected by the company’s ability to settle the remittance in real-time, and their customers are looking for real-time payouts, which brings Ripple into the picture.
He noted, “Ripple is doing a lot of unique things with blockchain and crypto” to help drive the possibility of real-time cross-border settlements.
“It has been a very nice partnership with Ripple. We have learned a lot together and continue to push boundaries of what can be and it has been a lot of fun for sure,” Holmes added.
While MoneyGram’s CEO believes the collaboration has been positive, reports surfaced last month that Ripple is planning to cash out about 30% of its stake at the money transfer company with a significant profit.
The report revealed that Ripple owns 6.22 million shares at MoneyGram, representing 8.6% shares outstanding, with a warrant to purchase an additional 5.95 million shares.
The company recorded a triple-figure growth in the past 11 months. In November alone, MoneyGram saw a 136% growth in customers, downloads, and expansions to more online markets with its online services.