How High Could XRP Go If Western Union and MoneyGram Start Using It for Settlements

XRP price may reach unprecedented heights if payment giants Western Union and MoneyGram start using it for settlements.

Western Union and MoneyGram’s Settlement Volume

Two of the major remittance companies that could leverage XRP for global payments are Western Union and MoneyGram. However, it remains unclear how much the XRP price could rise if these firms adopt it.

So, to explore the potential extent, we asked OpenAI’s ChatGPT. Interestingly, the chatbot responded with two extensive models based on transaction volume, liquidity needs, and investor behavior.

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For context, Western Union and MoneyGram move more than $350 billion every year together. Of this figure, $150 billion comes from Western Union and over $200 billion from MoneyGram. These two firms dominate the global remittance market, so any serious adoption of XRP could carry huge implications.

XRP Price if Western Union and MoneyGram Used It

In its first model, ChatGPT assumed that both firms fully adopt XRP for settlement and hold large XRP reserves to support fast transactions. It is estimated that they would need about $4.79 billion worth of XRP as a base reserve, which the broader market would have to support with at least $14.37 billion in circulating liquidity to avoid slippage and delays. 

Then, it factored in the behavior of long-term investors and speculators, using a multiplier of 50. Notably, this is similar to how Bitcoin’s price rose as institutions began to buy and hold the token. According to ChatGPT, under this model, XRP could climb to around $12.

Meanwhile, in the second model, it is imagined that both companies ditch all fiat routes and use only XRP for every transaction. Since real-world transfers involve delays from regulations and liquidity locks, it has reduced XRP’s turnover rate to 1.5 times a year. 

Also, ChatGPT assumed that both companies would hold enough XRP to match their annual volume as a safety buffer. This brought the total demand to $700 billion. Dividing that by the 59.23 billion XRP in circulation, the model gave a base price of $11.82. 

However, with an added multiplier of 8 to reflect market hype, long-term holding, and institutional FOMO, the final price soared to $94.56.

ChatGPT also clarified that these figures only show XRP’s value based on usage by Western Union and MoneyGram. They don’t include demand from other remittance firms, central bank digital currencies, or XRP’s deflationary supply changes. If those materialize, XRP could easily break the $100 mark.

Ripple’s Dealings with Western Union and MoneyGram

Interestingly, Ripple has already worked with both companies in the past. Back in 2019, it struck a deal with MoneyGram that allowed the remittance firm to use Ripple’s xRapid product to settle cross-border payments. 

Ripple even invested up to $50 million in MoneyGram’s equity. However, after the U.S. Securities and Exchange Commission filed a lawsuit against Ripple in 2020, MoneyGram paused its use of XRP and ended the partnership in early 2023.

Meanwhile, Ripple’s history with Western Union dates back to 2015, when the company tested Ripple’s tech as part of a pilot project. At the time, Western Union explored using xRapid and XRP to improve its payment systems. However, the company never moved forward with full adoption.