There has been plenty of speculation as to who would use Ripple’s technology and native XRP asset. Most of those questions were answered last year, when entities like Western Union, MoneyGram, and others confirmed firm interest in this project. Speaking of MoneyGram, the project has now officially begun transacting on xRapid, which is a very interesting development for all parties involved.
MoneyGram Means Business
Even though MoneyGram confirmed their interest in Ripple’s technology a long time ago, there were still a lot of doubters. That is not entirely abnormal, as Ripple and XRP have seen their fair share of criticism over the past few years. Most cryptocurrency enthusiasts simply dislike the project, although that negative attitude is often based on personal opinions rather than actual concerns.
With the new announcement, all of those donuts have been removed from the equation altogether. The money transfer company is effectively integrating xRapid into its business structure and transactions are taking place as of right now. It is evident that the company hopes to reap massive benefits from exploring this option, as transfers can be settled in seconds at a fraction of their original cost. In the end, this should be beneficial to customers who rely on MoneyGram’s services as well.
What About Using XRP?
There seems to be a lack of official confirmation on this regard. Although xRapid transactions are always settled with XRP due it being the native asset developed for this infrastructure, MoneyGram’s officials haven’t officially mentioned it in any capacity. There is a difference between using a company’s technology stack and its native asset, but it seems they are both needed where xRapid is concerned.
Based on the official press release issued by the company, it is unclear in what capacity XRP is being used as of right now. MoneyGram has effectively sold equity to Ripple – roughly $30m worth with another $20m to be added in the future – and Ripple has sold an interesting amount of XRP to corporate clients. How much of that supply changed hands between these two parties, remains uncertain.
Other Companies to Follow?
Now that the tone has been set by one of the world’s leading remittance service providers, it will be interesting to see how the competition responds. Any company offering overseas money transfers to clients will need to make their offering cheaper and faster. Failure to do so could make the company in question virtually obsolete in quick succession, which is something to be genuinely concerned about.
Several Japanese banks are also experimenting with xRapid, as are a few other players in the financial sector. It is possible this news by MoneyGram will force the hand of those companies to either double down on or abandon this project altogether. For Ripple, this “live trial” needs to yield the expected results, as it is the opportunity the company has been waiting for. Failure to meet expectations could prove disastrous for this firm.
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