REUTERS: Blockchain firm Ripple has bought US$30 million worth of shares and warrants in MoneyGram International Inc, the two companies said on Monday, as they partner to use Ripple's product for cross-border payment and foreign exchange settlement.
Ripple bought MoneyGram's stock at US$4.10 per share, representing a premium of about 183per cent to its Monday closing price. The partnership will initially be for two years, MoneyGram said.Shares of MoneyGram surged about 77per cent to US$2.56 after the closing bell. Ripple may also buy additional common stock or warrants for up to US$20 million at a minimum price of US$4.10 per share, MoneyGram said.
The partnership will focus on Ripple's xRapid, a platform for cross-border payments that uses XRP, a virtual currency powered by blockchain to send and receive currencies. "Through Ripple's xRapid product, we will have the ability to instantly settle funds from U.S. dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management," MoneyGram Chief Executive Officer Alex Holmes said in a statement.
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Source: BusinessTimes - 🏆 15. / 51 Read more »