Ripple completed a $ 50 million deal with MoneyGram
- Ripple extends its partnership with the US-based payment service provider.
- MoneyGram plans to launch additional payment channels based on On-Demand Liquidity.
Fintech-startup Ripple invested another $20 million in the American money transfer service MoneyGram, thus closing the deal for a total of $50 million, according to a press release.
At the final stage, Ripple acquired MoneyGram shares at $4.10 apiece. Now, a California startup owns 9.95% of the company's outstanding shares.
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. 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, said Alex Holmes, MoneyGram Chairman and CEO.
Ripple and the American company MoneyGram (NYSE: MGI) concluded their first agreement at the beginning of 2018. MoneyGram started using XRP-based xRapid this summer.
Holmes said earlier that 10% of transfers between the US and Mexico are processed by On-Demand Liquidity (ODL), using Ripple's XRP token. By the end of the year, the company plans to expand the use of ODL by adding four payment channels.
Author
Tanya Abrosimova
Independent Analyst
