Bitcoin Forum

Major money transmission network MoneyGram has entered into a strategic partnership with blockchain-based payments firm Ripple, according to a press release on June 17.

As part of the two-year agreement, the two firms will become partners in cross-border payments and foreign exchange settlements with digital assets. As part of the agreement, MoneyGram will be able to draw up to $50 million dollars from Ripple in exchange for equity.

MoneyGram will purportedly use Ripple’s xRapid liquidity product, which allows money to be sent in one currency and instantly settled in the destination currency. In using Ripple’s XRP token for such transfers, xRapid can purportedly settle such transactions faster than with fiat currencies or other major digital assets.

https://cointelegraph.com/news/ripple-to-invest-up-to-50m-in-moneygram-following-new-partnership

https://images.cointelegraph.com/images/740_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy9jMjIwYjA3Y2EzZjAyOGMzMzVjMGJiOWQ4M2E3ODYxZC5qcGc=.jpg

I think this was already reported before, I'm not quite sure. But this is a big venture, I don't have xrp but for holders this seems to be a big boost to all of you. $50M investment for the xrapid is a big amount for them but for adding this to market cap it wouldn't affect that much.

This partnership will definitely have a very good effect on the price of this coin in the near future, but we must not forget that after the growth in price of this coin, the fall immediately follows. this is XRP baby.

So this was the reason for sudden price hike of Ripple in comparison to other cryptocurrency. Moneygram still is a huge company and a real partnership with it meant a great deal.
If moneygram went on to transact it's money transfers through ripple, it would cause a high demand for ripple.

A win-win situation for both companies, one of them on its way to collapse (Moneygram)^[1] and the other one (Ripple) that, after their fail attempt at getting the big banks to use their service, is now looking for new ventures to invest (a few months ago they invested in something related to blockchain games^[2]) to 'advertise' their centralized coin. XRP will be able to use the 'Moneygram' name to attract more people into their platform, while Moneygram might be able to survive another winter.

Market already reacted with a small spike in the price, but I wouldn't recommend people to give in to FOMO and buy XRP right now (you'll be doing the early XRP adopters a big favor by pumping the price). If you really want to buy, I'd wait a few more days/weeks after the hype dies down.

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1. Moneygram stocks have been going down for years. Link: https://finance.yahoo.com/quote/MGI
2. https://coingape.com/xrp-gains-news-partnership-blockchain-gaming/

For Moneygram, this partnership also looks very profitable, new markets and new users, and Ripple continues to develop.

This is certainly a great achievement from the team behind ripple although is win both sides. Moneygram is one of leading companies in the world that deals with money transfers across the globe and I certainly believe this is one of the best partnership a cryptocurrency team can ever get.