Ripple Closes $50 Million MoneyGram Investment
November 26, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
American fintech startup Ripple announced on Monday that it has closed a $50 million deal with MoneyGram, providing the payment company with the latest $20 million investment.
Ripple now controls 9.95% of the outstanding common shares of MoneyGram. During the last stage of Ripple’s investment, shares were offered at $4.10 per share, which is approximately 30% higher than their current market value.
According to a press release, financing will help MoneyGram expand its operations, especially with the help of Ripple’s On-Demand Liquidity, which uses XRP cryptocurrency for transactions.
“Our partnership with Ripple is transformative for both the traditional money transfer and digital asset industry — for the first time ever, we’re settling currencies in seconds. This initial success encourages us to expedite expanding our use of On-Demand Liquidity,” said Alex Holmes, MoneyGram Chairman and CEO.
Earlier it became known that MoneyGram uses On-Demand Liquidity to carry out approximately 10% of transactions along the Mexican payment corridor. The company also plans to increase cryptocurrency transfer services in four new markets, including the European one.
“Last month, we announced that MoneyGram began using On-Demand Liquidity for payments to the Philippines, and we’re excited to support MoneyGram’s further expansion into Europe and Australia. Digital assets and blockchain technology have the potential to make a tremendous impact on cross-border payments — MoneyGram and Ripple is an example of that,” said Brad Garlinghouse, Ripple’s CEO. “In June, we announced this partnership, and it’s encouraging to see the rapid growth and benefits come to life.”
Author: Marko Vidrih
