MoneyGram confirms it has sold out $11.3 million worth of the cryptocurrency XRP which it received from Ripple as part of it’s commercial agreement with the payments processor.
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According to the SEC Filing, MoneyGram says it received XRP from Ripple as a compensation for using Ripple’s On-Demand Liquidity (ODL) platform to process cross-border payments.
The Ripple’s On-Demand Liquidity (ODL) settles remittance payments in real time by exchanging the sender’s currency into XRP, moving and converting it to the destination currency.
“Moneygram 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.”
According to a spokesman from MoneyGram, the Texas-based firm immediately liquidates all XRP coming in 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 acquired a $50 million stake in MoneyGram around June, 2019 for cross-border payments and foreign exchange settlements.
Meanwhile last month, National Bank of Egypt joined RippleNet Network utilizing blockchain service in remittance payments. The agreement between the National Bank of Egypt and Ripple will enable the bank create new channels for inward remittance.