Blockchain service provider Ripple Labs has finalized its $50 million investment in MoneyGram International (NASDAQ:MGI). The money transfer company received the final $20 million from the San Francisco-based firm as part of the commitment made in June 2019.
Ripple Completes Investment in MoneyGram
In June, the blockchain provider committed $30 million as part of the investment, and now it has completed the transaction. In the latest transaction, Ripple acquired MoneyGram’s newly issued stock at $4.10 per share, which is much higher than MoneyGram’s current market valuation. With the investment concluded, Ripple will now hold around 10% of MoneyGram International’s outstanding common shares.
According to MoneyGram CEO Alex Holmes, the partnership with Ripple is transformative for the digital asset segments as well as traditional money transfers. Holmes said that for the first time, they can settle currencies in a matter of seconds.
The Dallas-based money transfer firm aims at providing a platform that will enable its users across the globe to transfer and receive money quickly and safely. Customers can now transact effortlessly through the company’s mobile or online platforms, or at global agent locations. The money that MoneyGram received will go into supporting its payments product, On-Demand Liquidity, which uses XRP.
On-Demand Liquidity Enhancing the Trading Volume
Since the companies partnered in June, MoneyGram International has used the On-Demand Liquidity platform to transact around 10% of its trading volume of the Mexican peso foreign exchange. It has also expanded cross-border transfers to Australia, Europe, and the Philippines. The amount the company received from Ripple will help it enhance trading volume through the use of the XRP-powered payment platform.
Holmes said that partnerships such as the one with Ripple drive innovations and has helped MoneyGram to create enhanced customer experiences. He added that the company expects to enhance its growth into new territories as well as trying new products and services.
Ripple CEO Brad Garlinghouse stated that he was impressed with the progress they had made since they invested in MoneyGram International. He added that blockchain tech and digital assets have significant potential for transforming cross-border transactions.
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