Ripple, the company that provides innovative money transfer services, has completed its $50 million investment in MoneyGram. The company <a href="https://www.prnewswire.com/news-releases/ripple-makes-investment-in-moneygram-equity-to-complete-original-investment-commitment-expansion-of-on-demand-liquidity-accelerated-300964278.html">announced</a> on November 25 that it has invested the final $20 million after initially plugging $30 million back in June this year.

As per the announcement, Ripple bought the newly-issued equity from MoneyGram at a price of $4.10 per share. This represents a significant premium to MoneyGram's current market price. This new funding will facilitate MoneyGram's operations as the firm continues to raise volume and use of On-Demand Liquidity (formerly known as xRapid); Ripple's product that leverages the digital asset XRP to send money globally, instantly and reliably for at a negligible cost. 

Moreover, Ripple now owns 9.95% of MoneyGram's outstanding common stock; or about 15% on a fully-diluted basis. This essentially means the percentage of outstanding shares Ripple would own if all its securities are converted to shares.

According to MoneyGram's Chairman and CEO, Alex Holmes:
<blockquote>"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." </blockquote>
<h2>MoneyGram Thriving using Ripple’s ODL</h2>
In addition, at the moment MoneyGram moving about 10 percent of its Mexican Peso foreign exchange trading volume; through On-Demand Liquidity. The firm has already started transacting in four additional cross-border corridors. These include Europe, Australia and the Philippines since the partnership with Ripple was <a href="https://www.cryptoknowmics.com/crypto/moneygram-investment-opens-up-more-deals-for-ripple/">announced</a> back c June 2019. 

Furthermore, Ripple’s CEO Brad Garlinghouse, said:

&nbsp;
<blockquote>"Last month, we announced that MoneyGram began using On-Demand Liquidity for payments to the Philippines, and we're excited to support MoneyGram's further expansion into Europe and Australia. Digital assets and blockchain technology have the potential to make a tremendous impact on cross-border payments - MoneyGram and Ripple is an example of that. In June, we announced this partnership, and it's encouraging to see the rapid growth and benefits come to life."  </blockquote>
In conclusion, despite the news, XRP’s price isn't doing well. The digital currency is currently down 3% since yesterday. It has crashed by over 40% in the six months.

&nbsp;

Ripple Completes $50 Million Investment on MoneyGram Equity

Ripple, the company that provides innovative money transfer services, has completed its $50 million investment in MoneyGram. The company announced on... %

My first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.

Ripple Completes $50 Million Investment on MoneyGram Equity

Top Picks