Ripple paid $15.1 million in XRP incentives to MoneyGram in Q2 2020

Ripple • July 31, 2020, 7:31AM EDT
Partner offers
The Block may may earn a commission if you use our partner offers, at no extra cost to you.

Ripple paid its partner MoneyGram $15.1 million in XRP incentives in the second quarter of 2020.

MoneyGram revealed the figure in its Q2 earnings report published on Thursday. The Nasdaq-listed firm said Ripple paid $15.1 million, but $6.3 million was offset by related transaction and trading expenses, leaving $8.8 million as a net benefit.

MoneyGram categorizes Ripple payouts as "market development fees" and "contra expense" rather than revenue. The firm receives these incentives in XRP based on the volume it does via Ripple's On-Demand Liquidity (ODL) platform.

The Q2 incentives are a tad lower than the previous quarter figure of $16.6 million.

MoneyGram does not hold any XRP it receives from Ripple. "We sell XRP as soon as we receive it," a MoneyGram spokesperson told The Block earlier this year.

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.

TAGS
XRP

AUTHOR

Yogita Khatri profile picture Yogita Khatri

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.

See More
Connect on

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on

More by Yogita Khatri