Ripple committed to invest up to $ 50 million in MoneyGram

Cryptomaniac
By June 18, 2019 22:19

Ripple cryptocurrency - Coinconomist

Startup Ripple nevertheless concluded a strategic partnership with one of the world’s largest money transfer systems MoneyGram.

As part of the above contract, Ripple undertook to invest up to $ 50 million in MoneyGram through the purchase of shares. The focus of the new agreement is the xRapid product based on the XRP token, which helps MoneyGram to make cheap cross-border payments.

At the same time, representatives of the startup did not forget to emphasize a number of xRapid advantages over other crypto assets. Namely, small, compared to other digital assets, commissions and transfer time in two or three seconds versus 15 minutes or even hours in other networks.

Note that MoneyGram serves customers in more than 200 countries. Why do they need to purchase the majority of foreign currencies in advance in order to fulfill their settlement obligations to customers. Using the same xRapid, the system will be able to send funds in one currency and instantly calculate the recipient in another currency without the need for constant previous purchases. MoneyGram will be able to match financing terms with settlement requirements, reducing costs and risks, as well as improving its balance sheet. This approach will radically simplify the management of MoneyGram global liquidity.

The Wall Street Journal edition also noted that Ripple would acquire MoneyGram shares worth $ 30 million at a price of $ 4.10, which significantly exceeded the market share, which at that time was $ 1.45. (Although for justice, it is worth noting that only after the trading period of June 17-18, the price of shares jumped more than 153.8% and already amounted to $ 3.68). MoneyGram will also reserve the right to sell Ripple shares at the same price for another $ 20 million, if necessary.

Recall that the information that Ripple, like, acquired MoneyGram leaked to the media early last week. Then the representatives of the startup refused to comment on anything, advising to follow the official news.

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Cryptomaniac
By June 18, 2019 22:19