Moneygram soars after announcing Ripple partnership

Moneygram soars after announcing Ripple partnership

Could that be the gas that will fuel Ripple back into the leading shoes?

This partnership with MoneyGram is crucial for both - the technology behind Ripple and the cryptocurrency of XRP.

But bankers know the problem all too well. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. Under the Basel III regime, these reserves count against banks as balance-sheet assets, forcing them to hold even more cash to cover their supposed liabilities.

The goal of the pilot is to "move money as quickly as information", Brad Garlinghouse, CEO of Ripple, said in a statement. By joining Ripple's growing, global network, financial institutions can process their customers' payments anywhere in the world instantly, reliably and cost-effectively. Fees would be lower and the payment flows more transparent.

MoneyGram will pilot the use of XRP, the native digital asset of the XRP Ledger, in payment flows through xRapid, Ripple's solution for on-demand liquidity. Also, the average transaction time for settlement for XRP is just two to three seconds.

There are miles to go before a cryptocurrency-based system replaces correspondent banking, but MoneyGram's pilot looks like a step toward a world of faster, simpler, cheaper worldwide payments.

Banks within the Japan Bank Consortium are one of many institutions that are actively working with Ripple to solve the multi-trillion dollar problem plaguing the financial industry, corporates and consumers worldwide - the lack of liquidity (or cash) to instantly send or receive low-priced global payments. It could, indeed. But let's recap what happened with Ripple during the last week.

The MoneyGram announcement gave XRP a shot in the arm.

Pleasingly for XRP holders, this news managed to offset the major declines being faced by other cryptocurrencies due to reports that South Korea is preparing a bill to ban cryptocurrency trading.

There's about 38.7 billion XRP in circulation, with each unit of the cryptocurrency worth around $1.68.

However, its value has risen meteorically in the past two months, with its price surging more than 850%, according to Coindesk. In early January, Ethereum regained the No. 2 spot.