MoneyGram officially using XRP through Ripple's xRapid for cross-border payments

MoneyGram revealed it is now commercially leveraging XRP through Ripple's xRapid for cross-border transactions, according to the latest earnings call.

The integration represents the largest real world use case for XRP. During MoneyGram's Q2 2019 earnings call, MoneyGram shared that the company has been using Ripple's liquidity solution, xRapid, since late July.

The company did not provide any further details on the number of transactions or overall volume conducted using xRapid.

"Ripple will become our key partner for cross-border settlement using digital assets, and we've already started executing trades," stated MoneyGram in its written Q2 report.

Ripple is attempting to innovate in this area through its use of xRapid and XRP. The company claims that XRP provides "On-demand liquidity," allegedly alleviating the need for large balances held in nostro accounts.

"Through Ripple's xRapid product, we will have the ability to instantly settle funds from U.S. dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management," said MoneyGram CEO Alex Holmes in June 2019.

As a source of liquidity, payment services which use xRapid "Don't need to hold XRP for an extended period of time" because the transactions settle in seconds.

In June, Ripple committed to buying $30 million in MoneyGram equity at $4.10 per share, amassing a ten percent stake in the company, at a steep premium.

"We are very pleased with the terms of the Ripple investment which supports the company with permanent capital and additional liquidity MoneyGram [now has] the opportunity to improve operating efficiencies and increase earnings and free cash flow."

"MoneyGram [will] greatly improve its operations and enable millions of people around the world to benefit from its improved efficiency. is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies."