Ripple’s Strategic Investments and Partnerships
Ripple has been on a mission to expand its influence in the cryptocurrency sphere, and its recent partnership with MoneyGram is a big step in the right direction. Following a $30 million investment in the remittance powerhouse, Ripple is eyeing further acquisitions and partnerships to bolster its market position. Brad Garlinghouse, Ripple’s CEO, is leading the charge with plans to diversify their financial portfolio, proving that they mean business.
MoneyGram and xRapid: A Perfect Match?
As of August 3, MoneyGram started employing Ripple’s xRapid liquidity product, a critical component of their partnership. This innovation allows for speedy settlements of currencies, making cross-border transfers a breeze. But here’s the kicker: not many of Ripple’s other clients have jumped on the xRapid bandwagon yet. Why? Well, it’s a tale as old as time – not everyone is ready to take the plunge into the deep end of crypto liquidity.
The Rationale Behind the Investment
Garlinghouse addressed the speculation about whether Ripple paid a premium for its MoneyGram stake to prompt them to use xRapid. In an eloquent rebuttal, he remarked,
“I wouldn’t characterize it as an inducement…”
This indicates that Ripple believes in the true value of their offerings — it’s not just about buying influence; it’s about proving utility.
The Numbers Behind the Deal
When it comes to financials, Ripple knew it was making a hefty investment, particularly considering that MoneyGram shares had plummeted nearly 80% in the year leading to the partnership but then surged by 168%. According to Garlinghouse, this drastic increase is a testament to the deal’s potential. “This is a big deal,” he emphasized, hinting that Ripple’s collaboration with MoneyGram could outshine other major crypto movements like the Libra project.
Growth Projections are Sky High
Rumor has it that xRapid volumes increased by a staggering 170% between the first and second quarters of 2019. Garlinghouse is confident that this trajectory will continue as they aim to hit over $1 billion in xRapid volume by 2020. Add to this the fact that Ripple is bringing on board two new financial institutions weekly — that’s called momentum.
Ripple’s Market Position: Looking Ahead
Currently boasting over 200 contracts globally, with another 100 expected in the next year, it’s safe to say Ripple is not slowing down anytime soon. With 20% of these new contracts projected to involve xRapid and XRP, we can expect more exciting developments from Ripple as they solidify their position in the market.
XRP Sales Surge
In Q2 2019 alone, Ripple ramped up its XRP sales by approximately 48%, raking in $251.51 million. This uptick indicates a growing confidence in XRP, further paving the way for Ripple’s ambitious expansion plans.
