Ripple Completes $50M Investment in MoneyGram
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Nov. 26, 2019
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Fintech startup Ripple has just completed a $50M investment in MoneyGram after its recent $20M investment, according to a press release.

After the investment, Ripple now owns 9.95% of MoneyGram's common stocks. During the last stage of the investment, Ripple acquired shares at a price of $4.10 each, a 30% higher than the current price.

MoneyGram representatives say the agreement will help the company expand its operations. Particularly, it will make use of Ripple's On-Demand Liquidity (ODL), which uses the XRP token to carry out transactions. MoneyGram CEO Alex 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. This initial success encourages us to expedite expanding our use of On-Demand Liquidity."

It has recently been known that MoneyGram processes 10% of transfers between the US and Mexico through the On-Demand Liquidity solution. The company reportedly plans to extend the use of this system to 4 more brokers by the end of the year.

Ripple and MoneyGram closed their first deal in early 2018.

Ripple made an initial investment of $30M in MoneyGram shares earlier this year. As part of it, MoneyGram committed to carry out cross-border payments using digital assets.

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