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Ripple, the blockchain payments firm, has reportedly paid millions in market development fees to the money transfer giant MoneyGram.

According to the third quarter financial results published by MoneyGram on 29th October 2020, the remittance firm received about $9.3 million from Ripple over the period.

After $400,000 in transaction and trading expenses, MoneyGram amassed a net benefit of $8.9 million.

Read Also: Ripple Survey Reveals Huge Interest in Bitcoin, Ethereum, XRP among Payment Professionals

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Latest Payment to MoneyGram by Ripple since 2019

This payment is the latest since Ripple, the provider of several payment products aimed at financial institutions, invested the sum of $50 million in the money transfer giant in November 2019.

In the second quarter of 2020, MoneyGram received the sum of $15.1 million for the same purpose earlier stated.

The Purpose of the Market Development Fees

MoneyGram has previously described the purpose of the market development fees. According to the remittance firm, the fee is meant to serve as compensation for providing liquidity to Ripple’s On-Demand Liquidity (ODL) network.

Note: ODL is Ripple’s payments product that uses the digital token XRP to send money across borders.

Additionally, MoneyGram received $16.6 million in the first quarter of 2020, and the sum of $11.3 million in H2 2019.

Read Also: Ripple Finally Confirms Partnership with Bank of America (BoA) at Swell 2020

As it stands now, the San Francisco based payment firm has funded the money sender to the tune of over $52 million for providing liquidity for the XRP-powered payment product, ODL.

In early 2018, MoneyGram became one of the largest firms to publicly reveal its intention to pilot XRP in its remittance services.

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Tobi Loba

By Tobi Loba

Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.