MoneyGram says it has sold $11.3 million worth of the crypto asset XRP that it received from Ripple as part of MoneyGram’s commercial agreement with the payments startup.
In its latest SEC filing, MoneyGram says it receives XRP from Ripple as compensation for using Ripple’s On-Demand Liquidity (ODL) platform to facilitate cross-border payments.
“The Company is compensated by Ripple in XRP for developing and bringing liquidity to foreign exchange markets, facilitated by the ODL platform, and providing a reliable level of foreign exchange trading activity.”
Ripple’s ODL settles remittance payments in real time by converting the sender’s currency into XRP, moving the digital asset across borders, and then converting it to the destination currency.
Citing a spokesperson from MoneyGram, The Block reveals that the Texas-based firm immediately liquidates all XRP that it receives from Ripple.
“Remittance firm MoneyGram received $11.3 million worth of XRP from Ripple in incentive payments last year, but it sold those digital assets as soon as it received them according to a spokesperson.”
Ripple and MoneyGram entered into a strategic partnership for cross-border payments and foreign exchange settlements in June of 2019, with Ripple acquiring a $50-million stake in MoneyGram.
MoneyGram says it is now using XRP to move 10% of its transaction volume between the US and Mexico.