Reports from a filling with the U.S securities and exchange commission ( Sec), Payments startup Ripple has completed the acquisition of its $50 million stake in the remittance platform MoneyGram.The news was announced on Monday by company.
The deal which began in June 2019, saw Ripple in its final payment, bought $20 million of MoneyGram equity at a price of $4.10 per share, bringing it to more than a dollar per share. This price is well over the stock’s current price of around $3.00 per share. The acquisition was completed on Monday 25th.
According to the filed reports, “Ripple now owns below 10% of Money Gram’s outstanding common stock, including approximately 15 percent on a fully-diluted basis with non-voting warrants held by Ripple as the stake is being completed.”
MoneyGram’s operations will be supported further with this capital inflow as it expands its use of Ripple’s On-Demand Liquidity product, the renamed xRapid payment system that utilizes the XRP cryptocurrency.
There is a mutual understanding in their agreement as under the original deal, Ripple made an initial $30 million investment, while MoneyGram in turn agreed to utilize Ripple’s products for cross-border settlements as contained in the filling.
MoneyGram has begun using XRP to conduct transactions in Europe, the Philippines and Australia since June. Then roughly 10 percent of its Mexican peso foreign exchange trading volume, presently transacts. The reports stated.
A statement from the CEO Of MoneyGram. Alex Holmes praised the success of the deal as it will boost more innovation and expansion, saying that “This initial success encourages us to go further or expedite expanding on our use of On-Demand Liquidity, adding that. “I am looking forward to expanding our growth into new corridors, and exploring new products and services.”
MoneyGram chairman and CEO Alex Holmes stated more that the partnership was “transformative.” Also noting that the company could as well make settle transactions more efficient and fast too.
Another usefullnes of this union as stated by Brad Garlinghouse, Ripple’s CEO, is the ultimate expansion into other countries such as Europe and Australian payment platforms.
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