Ripple Paid MoneyGram $15.1M in ‘Market Development Fees’ in Q2
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Ripple Paid MoneyGram $15.1M in ‘Market Development Fees’ in Q2
MoneyGram received over $15 million from Ripple in Q2 for providing liquidity for the XRP creator’s 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 November.
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