Ripple Paid MoneyGram $15.1M in ‘Market Development Fees’ in Q2

shutterstock_716391676
31 July 2020

MoneyGram received over $15 million from Ripple in Q2 for providing liquidity for Ripple’s XRP-based cross-border settlement network.

  • In its second-quarter results Thursday, the Texas-based remittances company said it received $15.1 million from Ripple in what it called "market development fees."
  • Offsetting transaction expenses, MoneyGram said it made $8.8 million net benefit.
  • In its 2019 annual report, MoneyGram defined market development fees as the compensation for providing liquidity to Ripple's On-Demand Liquidity (ODL) network – the settlements layer using the XRP token to send money across borders.
  • MoneyGram received $16.6 million in Q1 2020, taking total compensation to $31.7 million in H1 2020. It also received a total of $11.3 million in H2 2019.
  • Ripple has so far paid MoneyGram $43 million to provide liquidity for its ODL network.
  • MoneyGram started using ODL for some of its global remittance operations in June last year.
  • Ripple completed the purchase of a $50 million equity stake in MoneyGram in November.

See also: Ripple Says XRP Lawsuit Based on ‘Unsupported Leaps of Logic’