We all know that the blockchain payments startup Ripple has been busy lately. The truth is that they’ve always been busy but have they been meaningfully productive? That’s what XRP holders need, like really need to know. If they purchased at the top in 2017, they’d find themselves underwater, waiting on the blockchain payments world to change.
How long will XRP holders have to wait for their world to change?
Let’s find out.
Ripple and MoneyGram
Over the course of 2017 and 2018, Ripple conducted a slew of partnerships, of course, none of this had anything to do with the use of XRP and had more to do with other products the company deployed. The hope for XRP holders with these flurry of new partnerships and meetings was that there might be some harmony, some value that would spill over into Xrapid, the product that utilizes XRP.
It didn’t happen. Synergies didn’t spill over. Demand was still scarce for XRP, this even after the Western Union and MoneyGram trials.
Garlinghouse and team had..maybe another brilliant idea? Use a portion of assets to purchase MoneyGram. A classic case of if they don’t use XRP, buy a $30 million stake in the company in stock and in warrants, then focus on xRapid integration for cross-border payments. A potential match made in heaven, one is a new innovative company that needs to preserve value in its allegedly non blockchain/blockchain token and the other is an ancient company looking for more life, a face lift, whatever, anything to be young again.
It was by all accounts a great play for both organizations.
According to Reuters, MoneyGram Chief Executive Officer Alex Holmes stated “through Ripple’s xRapid product, we will have the ability to instantly settle funds from U.S. dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management,”.
The initial partnership will be for two years with a potential to go further, a proverbial you pump my bags and I’ll help you pump yours.
Now Ripple looks to add more partnerships.
Ripple and Additional Partnerships
According to recent reports, Ripple should be in the process of courtship with other potential xRapid mates. The leadership at Ripple aims to use their dry powder to further their investments and make acquisitions.
Brad Garlinghouse, Ripple CEO, stated: “We’re in a very strong position, our business is growing strongly, we have a strong balance sheet, and I intend to press our advantage.”
MoneyGram has started xRapid liquidity utilization. The results of the MoneyGram partnership will be fascinating to watch in these next few quarters.
Ripple sold XRP and there’s nowhere to go but up with XRP. Well, maybe. Garlinghouse has stated that they will be more conservative with XRP sales into the future but we still need to know how conservative. We know we need further rapid expansion of the xRapid Ripple ecosystem to see an event based uptick in XRP.
A majority of XRP still remains with Ripple.
Development is in the works.
XRP holders will have to practice low time preference in XRP for the foreseeable future.
That’s all for the current XRP news, we’ll have to wait and see what types of partnerships Ripple will focus on for xRapid growth.