It is not clear what led to the huge gain, but a cryptocurrency analyst known as Welson says the phenomenon is an indication that Wall Street is interested in digital assets.
MoneyGram signed a partnership with Ripple in June this year that saw Ripple invest $50 million in the money transfer company. The partnership made MoneyGram a primary partner of Ripple for cross-border payment settlement using digital assets. The partnership which is to last an initial term of 2 years will focus on xRapid as a solution for liquidity for cross-border payment settlement.
Is Wall Street Up For Digital Assets?
Wall Street has traditionally been anti-cryptocurrency, probably because of the regulatory concerns surrounding cryptocurrency. Others have said the dislike for digital currency is because of its potential to disrupt the financial market as we know it.
Whatever the reason, a sudden interest in digital assets as a result of ripple’s collaboration with MoneyGram may be a welcome idea among cryptocurrency enthusiasts, investors, and holders.
This will also undoubtedly boost the growth of the cryptocurrency market and make it gain more acceptance and even increase its chances of becoming recognized as a mainstream investment option. Cryptocurrency so far is facing a lot of regulatory hurdles especially for Facebook’s Libra which regulators are taking through rigorous procedures to ensure compliance.
Some governments such as the European Union through the European Banking Authority has called for regulation of cryptocurrency to enable the government to monitor activities of those who use them. Accepting it as a mainstream sector may reduce the regulatory concerns which surround it currently and make it easier to use.
XRP Has Not Reacted
It would seem the partnership between the two companies has only benefitted MoneyGram or at least has not benefited Ripple’s native token, XRP.
As the token used to provide liquidity for cross-border payments, one would have expected it to increase in value in the market as well. Maybe the effect is not here yet but may eventually come now that Wall Street is picking interest in digital currencies as Welson claims.