Ripple Announced Partnership With Moneygram
The world’s third largest cryptocurrency firm Ripple has announced a partnership with the international transfer giant Moneygram. Ripple invests $50 million in exchange equity for the period of 2 years and Moneygram is agreed on using the XRP coin in international transfers.
Ripple will become Moneygram’s official partner for foreign exchange and cross border payment settlement using digital assets. Ripple allowed to stake upto 10 percent of the share of Moneygram or $30 million. Ripple initial investment will cost the company $4.15 per share.
This investment is a premium significant on the price of Moneygram share price (MGI). The price per share before the deal is $1.45 and see a magnificent increase of 114 percent in an hour and the price surges to $3.10.
The partnership is mainly focused on the xRapid product, which enables money to be sent from one currency and instantly settles in the destination currency. The XRP ledger (Blockchain) will work as a bridge between the transfer of different currencies.
CEO of Ripple Brad Garlinghouse added:
“This strategic partnership will enable MoneyGram to greatly improve its operations and enable millions of people around the world to benefit from its improved efficiency. This is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies,”
XRP the native token of Ripple settles payments with very low fee just a fraction of a penny and the settlement time is range from 2-4 seconds.
The Announcement further added:
“As the payments industry evolves and matures, it’s imperative that we continue to improve our platform and provide the most effective solution to get funds from point A to point B,” said Alex Holmes, MoneyGram Chairman and CEO. “Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US 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 operates in more than 200 countries and operates $600 billion in the global market supports multiple currencies. With this partnership, Moneygram will settle the payment in multiple currencies instantly which reduce the cost per transaction.
