On Tuesday, MoneyGram CEO Alex Holmes had a conversation with Julia Chatterley, the host of CNN’s First Move. Holmes spoke extensively about Ripple and the partnership between the two companies. As part of the conversation, the CEO said even though transactions handled using Ripple’s platform are “very very small”, MoneyGram has processed more than $100 million through Ripple’s XRP-Powered On-Demand Liquidity (ODL.) Holmes also spoke about the possibility of Ripple replacing SWIFT.
On transaction volume, he said:
“We went live with Ripple at the end of July and since then, on a cumulative basis, we just surpassed $100 million in total volume that we’ve pushed through the platform…[Ripple] is trying to take on some of the older processes, traditional bank transfers [and] traditional SWIFT transfers, in terms of how people move bulk dollars”
Holmes also dismissed reports of criticism leveled against MoneyGram that Ripple bought the payment giant’s participation with its investment. Ripple recently completed a $50 million investment, ensuring that the company now owns 9.95 percent of MoneyGram’s common stock. Holmes said that it’s just “two companies that can benefit in equal participation…it’s a mutual partnership and a win-win for both companies”.
The CEO re-confirmed that 10% of all cross-border transactions between the dollar and the Mexican Peso are done using ODL, and added that there are five corridors currently using the platform including the Mexican peso, Philippine Peso, and the Australian dollar. Holmes also said that depending on market supply, the company hopes to spread ODL to as many corridors as possible in the near future.
Chatterley also asked Holmes about SWIFT and whether Ripple’s ODL can grow large enough to replace the payment system.
“…whether you can ever displace or completely replace [SWIFT] is always a thought to ponder but securing larger and larger pieces of that pie is definitely not off the table for sure.”
Crypto influencer and forensic analyst Cory Johnson has added his 2 cents to the conversation. In a recent tweet, Johnson suggests that MoneyGram is not the only company working with Ripple in this manner. He said:
“I think MoneyGram is not alone in getting what Ripple, powered by XRP, can do – they’ve just got the guts to talk about it more openly.”