MoneyGram sells $50m stake to Ripple, will use XRP on its platform

By Akshay Kedari  Date: 2019-06-19

MoneyGram sells $50m stake to Ripple, will use XRP on its platform

The partnership will end the need to deploy foreign bank accounts, a reason why MoneyGram has a negative working capital

Ripple, the cryptocurrency company, has recently announced that it has teamed up with MoneyGram, a money transfer platform, in a partnership that will see MoneyGram’s services use digital currency XRP in day to day operations.

According to the terms stated in the deal, Ripple will pay $4.10 cents per share in order to acquire an 8% to 10% of stake in MoneyGram. In other words, Ripple is making an investment of $30 million and would be giving MoneyGram the option of additional cash infusion of $20 million in the next two years.

Apparently, the deal is going to provide Ripple with unparalleled opportunities to advocate the use of X-Rapid, a product which allows XRP transfer, it claims is superior in movement of money across borders. Ripple has long been against banks leaving money as collateral in foreign accounts and suggested the use of XRP in the form of bridge currency.

Brad Garlinghouse, CEO of Ripple said that the partnership will end the need to deploy foreign bank accounts, which is also the reason why MoneyGram has a negative working capital. The product will help smooth the treasury operations of customers, Garlinghouse added.

Reportedly, the investment in MoneyGram took place after its rival Western Union terminated a trial experiment with XRapid, stating that XRP transfer service did not produce any major savings. Despite being part of several pilot projects, XRP has not attained any breakout moment yet.

However, the CEO of Ripple claims that hundreds of partners have been using XRP in the recent months, with the implied value of the crypto being $18 billion, placing it as the third most valuable cryptocurrency after Ethereum and Bitcoin.

Citing reliable sources, Ripple is not going to secure a seat on the MoneyGram Board as of now but will attain the status of an observer.

 

Source Credit- http://fortune.com/2019/06/17/ripple-moneygram-xrp/

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Mark Zuckerberg planning to rebrand Facebook to reflect metaverse focus

Mark Zuckerberg planning to rebrand Facebook to reflect metaverse focus

By Akshay Kedari

There have been many businesses that have rebranded themselves to alter their identity with time. Following the league, social networking giant Facebook is also reportedly planning to rebrand the firm with a new name. On October 28, Chief Executive ...

Formula One teams to test second-generation biofuel during 2022 season

Formula One teams to test second-generation biofuel during 2022 season

By Akshay Kedari

The leading motorsport intends to achieve net-zero carbon status by the end of this decade. F1 has ruled out switching to an all-electric powertrain such as in Formula E. With increasing significance towards green mobility, Formula One teams are...

Apple’s iPhone 13 production may take a hit due to global chip shortage

Apple’s iPhone 13 production may take a hit due to global chip shortage

By Akshay Kedari

Apple Inc. is likely to cut down production of its iPhone 13 model by approximately 10 million units on account of the global chip shortage. The American multinational technology company was previously expected to manufacture 90 million units of the ...

Israel's GoTo Global acquires German e-moped sharing platform emmy

Israel's GoTo Global acquires German e-moped sharing platform emmy

By Akshay Kedari

Israel-based multimodal vehicle sharing services provider GoTo Global Mobility Ltd. has reportedly acquired Germany’s shared e-scooter company emmy. The acquisition will allow GoTo Global to enter the German market as well as accelerate its Eur...

German airline Lufthansa adds four new planes to its A350 fleet

German airline Lufthansa adds four new planes to its A350 fleet

By Akshay Kedari

Deutsche Lufthansa AG recently revealed that it has agreed to take four new Airbus A350-900 long-haul passenger aircraft on lease, utilizing newer planes that are left grounded as airlines reorganize their balance sheets in the wake of the ...