Date
21 January 2018
MoneyGram will test the use of Ripple’s cryptocurrency, XRP, to move funds in a faster and cheaper way. Photo: Reuters
MoneyGram will test the use of Ripple’s cryptocurrency, XRP, to move funds in a faster and cheaper way. Photo: Reuters

MoneyGram shares jump on partnership with bitcoin rival Ripple

Shares of MoneyGram International Inc. jumped 10.5 percent on Thursday, after the money-transfer company said it partnered with blockchain firm and bitcoin rival Ripple.

As part of the arrangement, MoneyGram will test the use of Ripple’s cryptocurrency, XRP, to move funds in a faster and cheaper way, Reuters reports.

Ripple, created by the founder of bitcoin exchange Mt Gox, has risen 31,000 percent over the past year, overshadowing bitcoin’s 1,200 percent increase.

XRP rose 13 percent to US$13.38 on Thursday, according to coinmarketcap.com.

Many see it as a close contender to bitcoin, which is by far the biggest cryptocurrency with a market value of more than US$250 billion.

XRP allows banks and payment companies to send money quickly, no matter the location. Its transaction fee, at just “fractions of a penny”, is also comparable to bitcoin’s US$30 per transaction fee.

Several companies such as UBS and Santander already use Ripple’s products to enable payments. In November 2017, American Express Co. also launched an instant blockchain-based payment system using Ripple.

China’s Ant Financial’s deal to buy MoneyGram for US$1.2 billion collapsed last week, after the Committee on Foreign Investment in the United States rejected it over national security concerns.

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CG

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