U.S. money transfer giant MoneyGram can be teaming up with blockchain firm Ripple to test payments using the latter’s cryptocurrency.
MoneyGram, based in Dallas, Texas, will use the XRP cryptocurrency to speed up in addition to also also reduce the cost of transferring money through Ripple’s payment network xRapid.
XRP was seen surging on the news, in addition to also also flew almost 15 percent higher to $2.22 at 9:55 a.m. ET, according to Coinmarketcap data. The move marked a recovery following downward pressure across most major cryptocurrencies Thursday after reports of South Korea preparing a bill to ban cryptocurrency trading.
Ripple claims an average transaction on its network takes between two in addition to also also three seconds to process. Bitcoin transactions, on the additional hand, take around 51 minutes on average to go through, according to data by industry website Blockchain.info.
Ripple has made headlines in recent weeks, as its native digital currency has surged — in addition to also also fallen — dramatically. which temporarily became the second-largest cryptocurrency by market value last month, usurping ethereum, after a huge rally.
XRP declined significantly after which rally however Ripple said its cost has not been reflected accurately, claiming which industry website Coinmarketcap’s decision to remove Korean cryptocurrency exchanges by its platform has affected prices. The website removed Korean exchanges due to the “extreme divergence” in prices compared to the rest of the globe.
“The inefficiencies of global payments don’t just affect banks, they also affect institutions like MoneyGram,” Ripple CEO Brad Garlinghouse said in a statement Thursday.
“Money transfer companies are incredibly important because they help people get money to their friends in addition to also also loved ones.”
Garlinghouse added which, by using Ripple’s digital asset, MoneyGram might be able to move money “as quickly as information.”
Ripple can be backed by several big international banks in addition to also also financial institutions. In November, the firm teamed up with American Express in addition to also also Santander on a blockchain pilot to speed up cross-border payments between the U.K. in addition to also also the U.S.