Ripple paid $9.3 million in XRP incentives to MoneyGram in Q3 2020
October 30, 2020, 11:00AM EDT
1 min read
Ripple paid remittances firm MoneyGram $9.3 million in XRP incentives during the third quarter of 2020.
MoneyGram revealed the figure in its earnings report released on Thursday. The Nasdaq-listed firm said Ripple paid $9.3 million, but $400,000 was offset by related transaction and trading expenses, leaving $8.9 million as a net benefit.
MoneyGram categorizes these payouts as "market development fees" rather than revenue. The firm gets paid based on transaction volume it processes via Ripple's On-Demand Liquidity (ODL) product that utilizes XRP for settlements.
Compared with the previous quarter, MoneyGram received $5.8 million lesser from Ripple in Q3, suggesting that the money transfer firm processed fewer payments in XRP in the latest quarter.
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.
While MoneyGram receives incentives in XRP, the firm does not hold the digital asset. "We sell XRP as soon as we receive it," a MoneyGram spokesperson told The Block earlier this year.