MoneyGram, money remittance firm, stated that it has been funded $20 million by blockchain service provider Ripple. Including this, Ripple has invested $50 million in MoneyGram, with the first tranche of $30 million invested in June.
The aforesaid amount was invested by acquiring stake at a price of $4.10 per share, higher than MoneyGram’s prevailing market valuation.
Alex Holmes, MoneyGram Chairman and CEO, explained how the partnership has enabled the company to settle transactions almost instantaneously.
Holmes said “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.”
Dallas, Texas-based MoneyGram intends to facilitate clients across the globe with a platform to safely and speedily transmit and receive money. Users can transact via online or mobile platforms of the firm using a kiosk or from one of its associates worldwide.
The partnership with Ripple in June has paved way for on-demand liquidity for MoneyGram via XRP-based payment solution. MoneyGram recently disclosed that 10% of its Mexican Peso Forex trading volume is conducted via XRP based platform, with cross-border transactions happening with Australia, Philippines and Europe.
The funding will enable the company to prolong using on-demand liquidity to boost its trading volume.
Brad Garlinghouse, Ripple’s CEO, detailed on how the partnership capitalizes on the ability of blockchain technology:
“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. In June, we announced this partnership, and it’s encouraging to see the rapid growth and benefits come to life.”
