MoneyGram, the second largest business in the world money transfer, and financial Ripple blockchain startup has signed a partnership agreement.
The agreement provides that MoneyGram will test Ripple for international transfers, in the hope that this will allow them faster and cheaper.
Executive Director of MoneyGram Alex Holmes commented on this event:
Ripple is at the forefront of blockchain technology. We hope that this partnership will increase our efficiency and improve customer service MoneyGram.
The head of the Ripple brad Garlinghouse also expressed his joy about the new partnership on Twitter, and the next tweet stated that this is only the first step, which will make Ripple a truly great cryptocurrency:
And to be clear: @MoneyGram announcement is one step in a marathon ahead to truly make $XRP the global liquidity solution for payment providers and banks.— Brad Garlinghouse (@bgarlinghouse) January 11, 2018
After the news, shares of MoneyGram jumped 8.3% to 13.89 USD.
See also Forecast the price of Ripple to 2018 (updated version)
According to the statement, the pilot project might not mean and guarantee that MoneyGram will start using XRP.
The token Ripple XRP allows Bank transfers in minutes, not the bottom (as is happening now). The company claims that its transaction fees are much lower than traditional money transfer services and competing cryptocurrencies such as bitcoin.
In the last few days the price of XRP down, and lost about a third of its value since last Thursday. However, over the last month, Ripple rose more than 700 percent. This cryptocurrency is currently in 3rd place in the ranking of cryptocurrencies according to CoinMarketCap.