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In the third quarter of 2020, a reward of $9.3 million was paid to the remittance company ().
MoneyGram disclosed this figure in its earnings report released on Thursday. The Nasdaq-listed company said that Ripple paid US$9.3 million, of which US$400,000 was offset by related transaction costs, and net income was US$8.9 million.
MoneyGram categorizes these expenditures as “market development expenses” rather than income. Through Ripple’s On-Demand Liquidity (ODL) product, the company gets paid based on the volume of transactions it processes, and ODL products use XRP for settlement.
Compared with the previous quarter, MoneyGram’s funds received from Ripple in the third quarter decreased by $5.8 million, indicating that the company processed fewer XRP payments in the previous quarter.
Ripple and MoneyGram cooperated in June 2019 to use XRP for foreign exchange settlement as part of MoneyGram’s cross-border payment process. As part of the transaction, Ripple invested $50 million in MoneyGram. Their cooperation agreement will expire in July 2023.
Although MoneyGram is rewarded in XRP, the company does not hold digital assets. Earlier this year, a spokesperson for the company said, “We will sell XRP as soon as we receive it.”
According to an earlier report by “Beijing”, Ripple is considering moving the company out of the United States. Its CEO Brad Garlinghouse stated that the blockchain payment infrastructure company may move to London, UK, because the country’s financial regulator, the Financial Market Conduct Authority (FCA), does not consider XRP to be a security.
Garlinghouse believes that the legal status of the XRP token is very critical, and the company may also consider other countries that have a similar position to the United Kingdom, such as Switzerland, Singapore, Japan and the United Arab Emirates.
Image source: pixabay
Author Liang Che