Ripple and MoneyGram entered into a two-year strategic partnership to collaborate in cross-border payments and international exchange settlements with virtual assets in June of this year. Ripple had invested $30 million at the time of signing in June.
“We are settling currencies in seconds.”
The chairman and CEO of MoneyGram, Alex Holmes, said that their partnership with Ripple is transformative for both the traditional money transfer and digital asset industry. He added that for the first time ever, they are settling currencies in seconds. The initial success encourages us to expedite expanding our use of On-Demand Liquidity (ODL), he further added.
Ripple’s ODL solution is processing over 10% of the MNX-USD transactions. Ripple’s CEO, Brad Garlinghouse, said that they announced this partnership in June, and it is encouraging to see the rapid growth and benefits come to life.
Ripple owns 9.95% of MoneyGram’s common stock.
According to the official announcement, Ripple purchased the equity from MoneyGram at $4.10 per share, and now Ripple will own 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 the company.
Ripple’s CEO noted, “Last month, we announced that MoneyGram began using On-Demand Liquidity for payments to the Philippines, and we’re excited to support MoneyGram’s further expansion into Europe and Australia. 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.”