MoneyGram has received over USD 15 million from Ripple in Q2 for providing liquidity for Ripple’s XRP-based cross-border settlement network.
The US-based remittances company said it received USD 15.1 million from Ripple in what it called ‘market development fees’, according to CoinDesk. Offsetting transaction expenses, MoneyGram said it made USD 8.8 million net benefit.
In its 2019 annual report, MoneyGram defined market development fees as the compensation for providing liquidity to Ripple's On-Demand Liquidity (ODL) network – the settlements layer using the XRP token to send money across borders.
MoneyGram received USD 16.6 million in Q1 2020, taking total compensation to USD 31.7 million in H1 2020. It also received a total of USD 11.3 million in H2 2019.
So far, Ripple has paid MoneyGram USD 43 million to provide liquidity for its ODL network. MoneyGram started using ODL for some of its global remittance operations in June 2019.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.