- Ripple Rounds up MoneyGram Investment Worth $50 Million
- The San Francisco-based firm has finally completed its $50 million investment in global payments processor, MoneyGram.
- The price of Ripple’s XRP is still struggling despite the $50 million MoneyGram investment.
According to reports, for our XRP news, Ripple Labs has finally finalized its $50 million investment in global payments processor, MoneyGram. Ripple claims that the funds are targeted towards the usage of its On-Demand Liquidity product (the global payments solution that uses Ripple’s XRP). Per the report, the San Francisco-based firm initially committed to the investment back in June. Now Ripple owns 10% of MoneyGram’s outstanding common stock.
$50 Million MoneyGram Investment Had no Impact on XRP Despite Usage
Following the process (from the XRP news today), since Ripple started its initiative to invest in MoneyGram, the Blockchain firm has now put an additional $20 million in MoneyGram following its initial investment of $30 million in June of this year. Per the XRP news, Ripple pledged to invest $50 million before making an initial $30 million payment. Now it has revealed that it has added the remaining payment of $20 million via a press release today.
This move concludes its commitment. The funds bought MoneyGram equity at a significant premium going by the current market value. Ripple reportedly paid $4.10 per share. The $50 investment will support MoneyGram’s usage of Ripple’s On-Demand Liquidity product. The product uses XRP to make instant payments at incredibly low rates. MoneyGram chief, Alex Holmes, believes that the partnership between the two entities will support innovation and investing in better consumer experiences. Holmes said he expects more growth for both firms.
XRP (XRP) Price Today – XRP / USD
Name Price 24H % $0.751 -0.80%
The MoneyGram CEO also commented on the successes that his company has enjoyed by using Ripple’s On-Demand Liquidity product. Recall that MoneyGram uses the service to move 10% of its Mexican Peso exchange. MoneyGram also uses On-Demand Liquidity in Australia, Europe, and the Philippines.
Ripple Chief Reflects on the Level of Progress of MoneyGram Investment
Ripple CEO, Brad Garlinghouse, was encouraged by the amount of progress that has been made since the San Francisco firm made the first investment in MoneyGram. According to the Ripple chief, digital assets and Blockchain tech can have a strong effect on cross-border payments citing MoneyGram and Ripple Labs as examples. Even though XRP has had more usage in recent times, the price of the coin has not fared well. This will be a year to remember for Ripple and XRP as the later gained more collaborations, its token still struggled. However, as of when we got this XRP news, the value of XRP has remained constant when compared to Bitcoin in recent days.