Ripple paid $9.3 million in XRP incentives to MoneyGram in Q3 2020

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.

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Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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