The second-largest money transfer company in the world, MoneyGram has partnered with fintech Ripple for its international transactions. Ripple has announced that it will purchase $30 million of MoneyGram shares at a premium of $4.10 per share. It has the choice of buying another 20 million dollar shares over the following two years. MoneyGram’s shares moved up to 168 percent following Ripple’s announcement.
MoneyGram will be using Ripple’s XRP enabled payment platform xRapid for international foreign trade repayment.
Currently, Ripple has 20 clients utilizing xRapid. The firm has further discussed the development of Xpring, its latest fundraising support wing, which has invested in half a billion dollars in order to boost XRP and develop the blockchain Ecosystem.
MoneyGram, on the other hand has associates in more than 200 nations around the world with access to a few billion bank accounts, which could drastically expand Ripple’s worldwide exposure.
CEO of MoneyGram, Alex Holmes said,
“Our partnership with Ripple will help further improve this core strength. Our internal innovation lab continues to explore new and exciting use cases for crypto, DLT, and blockchain as we look to build the model of the future.”
Ripple provides a platform to financial organizations and banks for quicker settling of cross-border payments. Its two primary products are called xCurrent and xRapid.
xRapid utilizes XRP, to offer on-demand liquidity, which drastically brings down expenses while empowering real-time payments in developing markets. It offers payment providers and banks a very productive, adaptable, scalable, and dependable liquidity choice to service cross-country payments.
Ripple can collaborate with cryptocurrency exchanges around the globe that are equipped for accepting fiat cash from banks. It can also convert the fiat cash into XRP and transfer it to the destination, where it can be converted back to fiat instantly using RippleNet.
Many firms have experienced a steep soar in share prices with their entry into the blockchain industry only to crash drastically, later. It is to see if the same might occur in case of MoneyGram or not.