Ripple’s MoneyGram expands in Sri Lanka with MMBL Money Transfer

Ripple backed MoneyGram is collaborating with MMBL Money Transfer, to expand its services in Sri Lanka, plans to conduct cross-border transactions globally.

By · Aug 11, 2020 . 5min read

Sri Lanka flag

Ripple and MoneyGram’s partnership are probably among the most significant collaborations between a conventional financial service provider and a blockchain-based entity. MoneyGram plans to expand in Sri Lanka with this association. According to a local report, MoneyGram is collaborating with MMBL Money Transfer, to conduct cross-border transactions across the globe efficiently.

MoneyGram is a global leader in cross-border P2P payments and money transfers. Further, with its customer-centric abilities, allow family and friends to swiftly and affordably transfer money in over 200 countries and territories, with almost 70 countries now digitally enabled. MMBL Money Transfer has over 2000 cash outlets and payout locations, including banks and retail outlets. Nevertheless, this collaboration will light new opportunities for MoneyGram’s expansion to millions of new users in Sri Lanka.

Exploring MoneyGram and MMBL Money Transfer’s Collaboration

With its On-Demand Liquidity (ODL) product, Ripple has been using the popular cryptocurrency XRP as a link to two currencies. As a result, it is eliminating the need for any pre-funding. Moreover, MoneyGram has been using Ripple’s ODL in its daily operations through RippleNet across several jurisdictions. Ripple has had close financial links with the remittance giant. 

The association offered about $30 million investment in its equity. Additionally, it offered a commercial agreement for cross-border settlement utilizing digital assets early in 2019. However, Ripple even bound the alliance with another investment of $20 million, raising its stake in Moneygram to 9.95%, while gaining rights to raise its stake to 15% in the future, a filing with the U.S Securities and Exchange Commission confirmed.

The remittance giant received $15.1 million in XRP once again, from Ripple Labs, titled as “market development fee” in the company’s quarterly report, and is probably intended to offer liquidity to Ripple’s ODL solution.

Summing up, after analyzing all aspects, one can say both the companies appear to be profiting from the collaboration. Every new expansion provides new possibilities for Ripple and XRP. We await to see how this collaboration brings in transformation and crypto adoption.

Follow Cryptodose for more updates.

Share
       
         All News