On June 17th, 2019, the cryptocurrency company Ripple announced its investment of up to $50 million into MoneyGram, a money transfer company. MoneyGram is a US-based company, and it’s the second largest provider of money transfers in the world, operating in more than 200 countries.
According to the deal, Ripple will pay $30 million for shares at a price of $4.10 a piece. Moreover, in the next two years, Ripple can buy an additional $20 million worth of shares.
Certainly, this is an excellent opportunity for Ripple to push the deployment of XRP, its native token and the third most valuable cryptocurrency after Bitcoin and Ethereum. Ripple has a product called X-Rapid, which allows transfer of XRP across the borders.
In a statement, MoneyGram CEO Alex Holmes said, “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.”
Ripple CEO Brad Garlinghouse thinks likewise. In a statement he pointed out the significance of this mayor partnership, “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,” he said.
One thing is sure: the partnership between these two giants is a win-win situation. For Ripple, it’s an opportunity to become a part of a global payment system and one more victory in attracting large financial institutions to trial its xRapid product.
Similarly, for MoneyGram it means an opportunity to recover from recent financial losses, and has a positive impact on its market price.