MoneyGram gets USD 5.1 mln from Ripple in 'Market Development Fees' in Q2

Tuesday 4 August 2020 09:39 CET | News

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.

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Keywords: MoneyGram, Ripple, XRP, cross-border settlement network, payments , global remittance
Categories: DeFi & Crypto & Web3
Countries: United States
This article is part of category

DeFi & Crypto & Web3