MoneyGram International Inc, a money transfer company, partnered with a blockchain company Ripple. The plan is to use Ripple’s product for cross-border payment and foreign exchange settlement.
Ripple has bought $39 million worth of shares and warrants in Moneygram, starting a two-year partnership. MoneyGram sold off its stock at $4.10 per share, a premium of around 183% to its Monday closing price. Its shares grew about 77% to $2.56 after the closing bell.
Ripple might also buy up to $20 million in additional common stock or warrants, at a minimum price of $4.10 per share, according to MoneyGram’s statement.
Ripple’s xRapid will be the focus of this new partnership. xRapid is a cross-border payment platform that uses XRP, a blockchain-powered virtual currency, to send and receive money.
“Through Ripple’s xRapid product, we will have the ability to instantly settle funds from U.S. 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 Alex Holmes, Moneygram’s Chief Executive Officer.
Ripple uses RippleNet to connect bankers and payment providers, offering a single, seamless experience of sending and receiving money on a global scale. Leveraging the power of blockchain, Ripple’s growing worldwide network called RippleNet provides instant, reliable, and cost-effective customer payment processing for financial institutions. XRP is a particularly useful digital asset that helps banks and payment providers access new markets, and reduce their costs. Ripple has offices in San Francisco, New York, London, Mumbai, Singapore, and Sydney, serving over 200 customers worldwide.
MoneyGram International Inc. is a U.S.-based money transfer company headquartered in Dallas, Texas. With regional and local offices scattered all over the world, MoneyGram also has an operations center in St. Louis Park, Minnesota. MoneyGram works with Financial Paper Products and Global Funds Transfers. Its network of agents and financial institutions provides services to businesses and individuals alike. The second most prominent money transfer provider in the world, MoneyGram operates in over 200 countries, its global network spanning to 347,000 agent offices.