Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra

Ripple CEO Brad Garlinghouse says the firm is looking into multiple investments and acquisitions following its $30 million partnership with MoneyGram this June.

As Yahoo! Finance reported on Aug. 9, Ripple’s deal with MoneyGram — the second-largest remittances firm worldwide — saw it purchase a 10% stake in the entity, with an option to increase its investment by a further $20 million within two years. 

MoneyGram starts using xRapid

MoneyGram began using Ripple’s xRapid liquidity product on Aug. 3 — a central stipulation of the $30 million deal — as revealed by MoneyGram CEO Alex Holmes during the company’s second-quarter earnings call earlier this month. 

XRapid — which uses the XRP token to facilitate the instant settlement of money sent in one currency into a destination currency — is notably not used by many of Ripple’s other clients, such as Santander, Standard Chartered and American Express. 

In his interview with Yahoo! Finance, Garlinghouse rebuffed the notion that Ripple had forked out a premium on MoneyGram shares to ensure the firm would adopt the technology:

‘“I wouldn’t characterize it as an inducement […] we’re getting more and more customers to sign up and we’re seeing that value. If we want to accelerate that, we have the option of doing things that might be perceived and characterized by some as an inducement.”

Garlinghouse revealed that Ripple paid a high price for the deal given the reluctance of private equity firm Thomas H. Lee Partners to sell at market values: Moneygram shares had dropped almost 80% in the 12 months leading up to the partnership, but surged 168% thereafter. 

“This is a big deal”

The Moneygram partnership, Garlinghouse claimed, represents one of the first use cases of a crypto asset in production at scale:

“This is a big deal. If I were betting now, a year from now the MoneyGram deal will have a more consequential impact on the crypto markets than the Libra white paper.”

With xRapid volumes up 170% between Q1 and Q2 2019 — even ahead of the MoneyGram development — the CEO forecast xRapid would hit over $1 billion in volume by 2020. 

Currently, Ripple is reportedly signing on two new financial institutions per week — with over 200 contracts with global clients already under its belt. Garlinhouse expects around 100 new contracts to be signed this year, 20% of which will involve xRapid and XRP.

As reported, Ripple increased its quarterly XRP sales by roughly 48% in Q2 2019, selling $251.51 million worth of the token.

14  Comments Add a comment…

  • Masao Akimoto  

    You don’t see Trump tweeting about a crypto often. He did for Libra, which kinda makes Libra a bigger deal.

    Reply

    • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra barbagiggia Masao Akimoto  

      Because Trump is an idiot.

      Reply

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  • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Charles Toth  

    so why dosen’t price go up?

    Reply

    • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Wannus Vander Bauwhede Charles Toth  

      As reported, Ripple increased its quarterly XRP sales by roughly 48% in Q2 2019, selling $251.51 million worth of the token… They sell more of their own tokens and keep the price around 0.3dollar. Stability of XRP is much better for Ripple then volatility. They still have a big bag of tokens to sell, so don’t expect big big jumps.

      Reply

  • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Charles Toth  

    so big why dosen’t price go up?

    Reply

    • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Piranha Charles Toth  

      The simple answer is because its a centralized banker Turd! It’s Paypal with a wig on.

      Reply

      • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Next Gen Gaming Charles Toth  

        Exactly. Neither Libra nor Ripple are crytpos, they are centralized payment systems that aim to compete with PayPal, Venmo, Visa, Mastercard, etc. Have to give Ripple credit for being much smoother on their marketing and introduction strategy than Libra. Libra introduction looks juvenile and sophomoric in comparison. That’s what happens when your strategy is being run by a 26 year old millenial with limited real world experience.

        Reply

        • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Geoff Kirwan Charles Toth  

          sigh. fudbingo. XRP are cryptos; they’re DECENTRALIZED (hey quick, what country that rhymes with Schmina controls more than 50% of btc mining). fudbingo.com for the win.

          Reply

        • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra JT marlin xrp financial Charles Toth  

          Incorrect statement, Ripple is a payments company that has various product offerings for international payments geared for institutional use. Ripple is really trying to compete with the monetary banking system and swift by offering, instant settlement via a digital asset. XRP is a token which is the native token on a decentralized distributed ledger (XRPL) that uses cryptography to validate transactions on the network. Anyone can create a payment mechanism that works on the XRPL decentralized ledger and market it. Anyone can run a validator to validate transactions. Ripple may have a majority share of XRP but does not make it centralized as it is being released via escrow. Paypal and venmo are both consumer products so really not comparable category. Credit card processors like mastercard and Visa are payment companies too but have a different business model, they are more of a technology company that act as an authentication method between Customer, merchant, acquirer and issuer. Credit card companies charge a fee to banks and not the end consumer. Libra is not a product but a concept similar to paypal and venmo would be a consumer product but would be a crypto asset pegged to a fiat currency price. Who is a 26 year old millenial? Libra is a group of companies that got together for a potential investment trying to cut banks out of the payment process.

          Reply

    • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Michael Goldsholl Charles Toth  

      Go up? Hell , why is the prices freaking crashing?

      Reply

  • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Anthony Jackson  

    very misleading headline. GARLINGHOUSE said bigger than the LIBRA WHITE PAPER not bigger than Libra as the headline suggests. Poor attempt at journalism

    Reply

  • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Michael Goldsholl  

    I’m more confused by your comment then I am libra or white paper. He said it would be bigger . What is your issue

    Reply

  • Ripple CEO: MoneyGram Using XRP a Bigger Deal Than Facebook’s Libra Michael Goldsholl  

    Moneygram has gone up 25% since the q2 .05 eps 2.45 to now 3.28.

    The rise is speculative on q4

    Reply

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