Cryptocurrency

Ripple invests $20M to finalize partnership with MoneyGram

Ripple finalizes partnership with MoneyGram

Ripple Blockchain-based payments have completed their original commitment by investing $20 million to finalize its partnership deal with MoneyGram money transfer network.

The investment was announced on Monday under the terms of the partnership, with MoneyGram using the Digital Ripple (XRP) currency as part of its day-to-day international money transfer operations.

As Ripple labs Inc. has made a final investment of $20 million in MoneyGram as part of Ripple's original $50 million investment commitment.

Ripple will also pay $4.10 per share to acquire 8-10% of MoneyGram's shares, representing $30 million, plus an additional option to invest $20 million over the next two years.

This partnership is important for Ripple as it will provide a real use of its XRapid product, which will allow the addition of a new use of the XRP currency in the international transfer of funds.

"This partnership will eliminate MoneyGram's need for foreign bank accounts and help customers move their money faster," said Brad Garlinghouse, CEO of Ripple.

Ripple's investment comes a year after Western Union, the rival company of MoneyGram, ended its XRapid product experience, which commented that the service did not provide much for its services.

The CEO added that hundreds of companies today use the XRP, and the presence of this high liquidity will eliminate the risk of the volatility of the digital currency and make it easier for financial companies to sell and buy it.

According to its website, MoneyGram is the second largest payment company in the world, operating in more than 200 countries, and a large part of MoneyGram's global remittance market, valued at about $600 billion, is located.

Meanwhile, the Bitcoin is trading 3.20 percent up at $7,120, Ethereum surged 1.72 percent to $145, Ripple advanced 0.18 percent to $0.220, according to BitStamp exchange.

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