Ripple buys a $50 million stake in MoneyGram, one of the largest money transfer companies in the world.
The stock rocketed up to over 150% after trading hours.
Through this partnership, which is going to have an initial term of two years, Ripple will become Moneygram’s key partner for foreign exchange settlements and cross-border payments, using digital assets.
MoneyGram CEO W. Alexander Holmes said the following thing in an interview:
“From a platform perspective, xRapid and XRP as an asset is the absolute right one to use for the settlement purposes, and it should, if done well, going to enable others to jump on board, and participate as well, because its little bit like the chicken and the egg. I think we have liquidity, but we don’t have the speed, and the back-end processes. They have the speed but not the liquidity, so I think this will be the perfect marriage, and I think it’s going to be the perfect opportunity to show the world what we can do together.“
Ripple’s CEO, Brad Garlinghouse appeared on Brainstorm Finance 2019, just two days after the deal, confirming the partnership, plus he addressed other topics like the G20 meeting on Japan, and how Facebook’s Libra can impact the overall market, plus companies, like Western Union.
You can watch the full interview below.
MoneyGram Sign image by Mike Mozart. Licensed under CC BY 2.0.