Ripple completes $50 mn investment in MoneyGram
Earlier this year, Ripple made an initial investment of USD 30 million in MoneyGram equity.
November 27, 2019 / 07:55 PM IST
MoneyGram announced that Ripple, a provider of leading enterprise blockchain solutions for global payments, has made the final USD 20 million investment in MoneyGram equity pursuant to Ripple's original USD 50 million equity investment commitment made earlier this year.
Ripple purchased the newly-issued equity from MoneyGram at USD 4.10 per share, which represents a significant premium to MoneyGram's current market price. This funding will support MoneyGram's operations as the company continues to increase volume and use of On-Demand Liquidity, Ripple's product that leverages the digital asset XRP to send money globally, instantly and reliably for fractions of a penny.
"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. "Partnerships with companies like Ripple support innovation and allow us to invest in creating better customer experiences. I anticipate furthering our growth into new corridors and exploring new products and services."
Earlier this year, Ripple made an initial investment of USD 30 million in MoneyGram equity at the same time that it signed the commercial agreement with MoneyGram for cross-border settlement using digital assets.
After this most recent USD 20 million investment, Ripple will own 9.95 percent of the outstanding common stock of MoneyGram, and approximately 15 percent on a fully-diluted basis including non-voting warrants held by Ripple.