A global provider of money transfer services MoneyGram has announced that blockchain-based payments firm Ripple has invested a final $20 million. Thus, completing its original commitment.
According to a press release, the major money transfer network announced that Ripple Labs Inc. has made a final $20 million equity investment in MoneyGram. This is part of Ripple’s original $50 million equity investment commitment.
The two companies started a 2-year-strategic partnership in June 2019. Moreover, the companies will collaborate in cross-border payments and foreign exchange settlements with digital assets. According to the agreement, MoneyGram would be able to draw up to $50 million dollars from Ripple in exchange for equity.
MoneyGram will reportedly use Ripple’s xRapid liquidity product and allow for money to be sent in one currency. Moreover, the money will instantly settle in the destination’s currency. By using Ripple’s XRP token for such transmissions, xRapid can purportedly settle these kinds of transactions faster. As opposed to other main digital assets or fiat currencies.
Ripple’s CEO: There Are Too Many Cryptocurrencies
Brad Garlinghouse, Ripple’s CEO, said that digital assets and blockchain technology have large potential. It can make a tremendous impact on cross-border payments. MoneyGram began using On-Demand Liquidity for transactions to the Philippines. Thus, Ripple is excited to support MoneyGram’s further expansion into Europe and Australia, Garlinghouse says. According to the CEO, the announced partnership is encouraging to see the fast growth and benefits come to life.
Furthermore, Ripple bought the equity from MoneyGram at $4.10 per share and will now own 9.95% of MoneyGram’s common stock.
At the beginning of November, Garlinghouse said there are too many cryptocurrencies so far. They claim that only 1% of the total are here to stay, adding that very few will be able to meet customer needs. According to the CEO, this small number of crypto projects will be revolutionary. Furthermore, they will have significant growth in the next ten years as they will focus on solving real problems for real customers.
