Today Ripple has announced a “strategic partnership” with MoneyGram who will be looking to utilize XRP & xRapid for day to day operations. MoneyGram will be looking to benefit in the partnership in the form of cross-border payments and foreign settlements.
“Through Ripple’s xRapid product, we will have the ability to instantly settle funds from U.S. dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management,” MoneyGram Chief Executive Officer Alex Homes said in a statement.
In the last couple weeks there have been a lot of rumors regarding MoneyGram and Ripple. Initially there were rumors that Ripple purchased 100% of MoneyGram which we learn today is not the case. We learned today that Ripple has bought $30 million worth of shares/warrants in MoneyGram stock. Shares of MoneyGram have soared nearly 100% + in aftermarket after news broke. Ripple had purchased MoneyGram stock at around $4.10/share which is a hefty premium to its current trading price. There must be a lot of conviction and faith in the partnership they are working out. In our opinion this was a perfect deal for Ripple. Many were talking about Ripple purchasing MoneyGram as being a negative thing since MoneyGram has so much debt on their balance sheet. In this scenario, Ripple should not be exposed to much of these issues. The two companies will look to put together a plan that will benefit both parties and accelerate the use of xRapid / XRP.
Along with MoneyGram stock taking off in aftermarket trading, we are also seeing XRP accelerating currently trading around $0.45 +7% the last 24H. It will be interesting to see how the market digests this news. We will be waiting for international markets to wake up and see the news drop.