Blockchain-based payments startup Ripple has invested another $20 million in MoneyGram, following its initial investment of $30 million in June.
Announced by MoneyGram on Monday, Ripple purchased MoneyGram’s newly issued equity at $4.10 per share, a significantly higher price than the company’s current market value.
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This completes the San Francisco-based company’s commitment to put a total of $50 million in the remittance company.
Commenting on the investment, Alex Holmes, chairman and chief executive of MoneyGram, said: “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.”
Paving the way to blockchain adoption
Ripple made an initial investment of $30 million in MoneyGram in June to strengthen its cross-border payment network. Since the partnership, the remittance company is using Ripple’s on-demand liquidity services to move around 10 percent of Mexican pesos foreign exchange trading volume and has expanded its cross-border transactions to Europe, Australia, and the Philippines.
“Partnerships with companies like Ripple support innovation and allow us to invest in creating better customer experiences. I anticipate furthering our growth into new corridors and exploring new products and services,” Holmes added.
Now with the fresh investment, the blockchain company owns 9.95 percent of the outstanding common stock of MoneyGram and approximately 15 percent on a fully-diluted basis, including non-voting warrants held by Ripple.
“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,” said Brad Garlinghouse, Ripple’s CEO.
Meanwhile, Ripple is also strengthening its global partnership to lobby its payment transfer services in different countries. Last month, the company partnered with Finastra in London, offering cross-border payments services to its users.