MoneyGram Received 11.3 Million As A Dividend From Ripple Labs

The Securities and Exchange Commission (SEC) stated that MoneyGram a money transmission network has acquired over $11 million via Ripple Labs.

The MoneyGram shared in a press release that they have got the divided from Ripple of two quarters. The fourth-quarter dividend amounts to over $8.9 million and $2.4 million in the third which totals over $11.3 million and the reported revenue for Q4 was $323.7 million.

"MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities."

However, the SEC filings have not stated any Ripple’s investment that will be used for. The agreement between Ripple and MoneyGram had allowed it to use XRP and also its blockchain product ODL(On-Demand liquidity) to facilitate cross-border payments.

The report reads, "[MoneyGram] is compensated by Ripple for developing and bringing liquidity to foreign exchange markets, facilitated by Ripple's blockchain, and providing a reliable level of foreign exchange trading activity. The Company expects that this partnership, at scale, will reduce our working capital needs and generate additional earnings and cash flows."

MoneyGram and Ripple have been in partnership since January 2018 for integrating MoneyGram into XRP as a payment system. The two bodies had collaborated back in June 2019 to avail of cross-border payments and foreign exchange settlements with digital assets. In spite of this partnership, Ripple doesn’t handle all the money transfer methods.