As part of the agreement, MoneyGram will utilise XRP in its core money transfer business. Ripples initial investment will consist of the company paying USD 4.10 per share for up to a 10% stake of MoneyGram, or USD 30 million. MoneyGram would also hold an option for an additional investment of up to USD 20 million by Ripple in the next two years.
Ripple is the creator and owner of the XRP cryptocurrency, and it has sought to drive adoption of the crypto-asset via tokens held in escrow and released quarterly. The company has succeeded in attracting financial institutions to trial its xCurrent product, which doesnt involve the XRP currency in the money flow. However, the deal with MoneyGram ensures that Ripples xRapid, which utilises XRP in the money flow, will be used in global money transfers at scale for the first time.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.