Ripple announced its investment into, and partnership with, MoneyGram, the world’s second largest global remittance company. In a blog post, Ripple explained the partnership will focus on the XRP-reliant xRapid, its solution for “on-demand liquidity, which reduces reliance on pre-funding by enabling money to be sent from one currency and instantly settled in the destination currency.”
MoneyGram’s NASDAQ-listed stock spiked by over 150 percent from Monday’s market-close after Ripple chief executive Brad Garlinghouse answered questions regarding how much equity Ripple gets from the MoneyGram deal by stating the following:
“What we committed to do is to invest up to fifty million dollars. We’ll end up owning somewhere between about six or seven percent and ten percent of the company. [MoneyGram] decide, over the course of the next year, how much of that fifty million they want to call down. At close, they’ve called down thirty million at a price of four dollars and ten cents per share.”
