Ripple announced a partnership with MoneyGram, the second-largest money transfer service in the world. Under the agreement, Ripple would become MoneyGram’s partner for cross-border payments and foreign exchange settlement using xRapid, the company’s XRP -powered settlement service.

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As part of the agreement, Ripple agreed to provide a $50 million capital commitment to MoneyGram, enabling Ripple to spend up to $50 million in exchange for equity in MoneyGram over a two-year period.

“This is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies,” said Brad Garlinghouse , CEO of Ripple.

The partnership will focus on Ripple’s xRapid, a solution for providing on-demand liquidity. The service reduces the reliance on pre-funded nostro accounts, enabling instant currency settlement in a destination currency using XRP as an intermediary.

“Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management,” said MoneyGram CEO Alex Holmes.

Unlike some of Ripple’s other services, xRapid leverages XRP and may have an appreciable impact on the price of the asset in the long-term.

XRP surged 6.28 percent in response to the news.

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