The money transfer service received a $11.3M investment from the fintech startup during the last two quarters of 2019, CoinDesk has reported making reference to reports by the US Securities and Exchange Commission (SEC). $2.4M of the funds were invested in the third quarter, while the remaining $8.9M were invested in the fourth quarter.
Although it is still unknown how these funds will be used, the company's Q3 report suggests the investment will allow MoneyGram to more actively use the XRP-based on-demand liquidity solution for cross-border payments:
"The company expects that this partnership, at scale, will reduce our working capital needs and generate additional earnings and cash flows."
In late 2019 MoneyGram announced it had begun to actively use Ripple's ODL solution. According to MoneyGram CEO Alex Holmes, ODL processes 10% of the transactions between the US and Mexico.
Ripple and MoneyGram started to cooperate together in June 2019. Ripple committed then to invest up to $50M in MoneyGram.