50 million investment

Ripple and MoneyGram made headlines last year when Ripple invested 50 million dollar in the well known remittance platform. As a part of the deal MoneyGram would start using its “On-Demand-Liquidity”-service, the renamed XRapid-solution, leveraging XRP as payment instrument for cross border transactions. The money from the investment was to support the company’s operations, in particular related to developing its use of the Ripple provided service, according to filings at the time.

MoneyGram has now used XRP for transactions in geographies such as Europe, the Philippines and Mexico since June last year. They have talked warmly about how the solution can: .”..reduce our working capital needs and generate additional earnings and cash flows” according to the company’s third quarter filings.

Covering the cost of using XRP?

However, judging by the recent 8-K filing, the 50 million dollar investment and the solution itself does not seem to to cut it (yet), as it reviles that Ripple has paid an extra of 2.4 million dollar in third quarter and 8.9 million in fourth quarter last year in “financial benefit”.

The filing does not state the use of this money, but judging by the context it is likely a compensation for the costs related to the scaling the use of XRP and building infrastructure and liquidity around it.