The company announced Monday a major partnership with MoneyGram, which will use Ripple (XRP) as part of its daily international money transfer operations.
Under the terms of the partnership, Ripple will pay $ 4.10 per share to acquire between 8 and 10 percent of MoneyGram shares , representing $ 30 million, plus an additional option to invest $ 20 million over the next two years.
This partnership is important for Rippel because it will provide real use of itsXRapid product , which will allow the addition of a new use of XRP to international money transfer.
“This partnership will eliminate MoneyGram’s need for foreign bank accounts and help customers move their money faster,” said Brad Garlinghouse, chief executive of Ripple.
— Brad Garlinghouse (@bgarlinghouse) June 17, 2019
The company’s investment comes one year after Western Union’s rival, MoneyGram, ended its XRapid product experience, which commented that the service did not provide much for its services.
Hundreds of companies today use the digital ripple (XRP), and this high liquidity will eliminate the risk of the coin volatility and make it easier for financial companies to sell and buy XRP, the CEO said.
“We are very pleased to partner with Ripple, which will provide us with new capital and additional liquidity,” said Larry Angelley, CFO of MoneyGram.
MoneyGram hopes the partnership will also provide an opportunity to improve the efficiency of its services and increase profits due to new technical services.
Please note, that is not a bit of financial advice, nor the WhaleToBe team’s view