Earlier this year, MoneyGram entered into a partnership with Ripple to provide cross-border payments and international exchange settlements with virtual assets. The deal worth $50 million saw Ripple investing $30 million when the contracts were signed, and MoneyGram have now received the remaining $20 million.
Alex Holmes, CEO of MoneyGram, has stated that the collaboration breaks new ground in the money transfer industry as currencies are being settled ‘in seconds’. He revealed that Ripple’s On-Demand Liquidity solution is responsible for processing more than 10% of transactions between MNX and USD. The rapid growth has ignited plans to utilise the ODL solution and expand it into Europe and Australia. Brad Garlinghouse, CEO of Ripple, noted that they are ‘excited’ to support this expansion as this partnership has displayed the enormous effect that digital assets and blockchain technology can have on cross-border payments.
The announcement revealed that the equity was purchased from MoneyGram at $4.10 per share, with Ripple now owning 9.95% of the remaining common stock, in addition to 15% fully-diluted shares.