Ripple paid $15.1 million in XRP incentives to MoneyGram in Q2 2020
July 31, 2020, 7:31AM EDT
1 min read
Ripple paid its partner MoneyGram $15.1 million in XRP incentives in the second quarter of 2020.
MoneyGram revealed the figure in its Q2 earnings report published on Thursday. The Nasdaq-listed firm said Ripple paid $15.1 million, but $6.3 million was offset by related transaction and trading expenses, leaving $8.8 million as a net benefit.
MoneyGram categorizes Ripple payouts as "market development fees" and "contra expense" rather than revenue. The firm receives these incentives in XRP based on the volume it does via Ripple's On-Demand Liquidity (ODL) platform.
The Q2 incentives are a tad lower than the previous quarter figure of $16.6 million.
MoneyGram does not hold any XRP it receives from Ripple. "We sell XRP as soon as we receive it," a MoneyGram spokesperson told The Block earlier this year.
Ripple and MoneyGram partnered in June 2019 to leverage XRP in forex settlements as part of MoneyGram's cross-border payment process. As part of the deal, Ripple invested $50 million in MoneyGram. Their partnership agreement is scheduled to expire in July 2023.