Cryptocurrency startup, Ripple, today recorded a significant milestone its quest to make XRP the global standard for money transfers.
According to a Fortune report, Ripple has announced a milestone partnership with leading money transfer company, MoneyGram. The deal will see MoneyGram use Ripple’s product, XRapid and thus the XRP coin as part of its day-to-day operations while the crypto startup will, on the other hand, acquire an 8%-10% stake in MoneyGram.
Specifically, Ripple would buy $30 million worth of MoneyGram shares for $4.10, which is nearly three times its current value ($1.45). The cryptocurrency startup, as part of the deal, would also put in another $20 million into MoneyGram within the next two years.
Speaking regarding the latest partnership, Ripple’s CEO Brad Garlinghouse deliberated on the benefits the MoneyGram would enjoy by using XRapid. He told Fortune,
“This [XRapid] will eliminate the need to deploy foreign bank accounts. That’s why MoneyGram has negative working capital. It will help customers and also smooth out their treasury operations.”
Meanwhile, the new investment into MoneyGram is expected to reinvigorate the company whose shares according to Fortune suffered a dip following “recent losses and several dismal earnings reports.”
It was therefore not surprising that Larry Angelilli, the Chief financial officer of MoneyGram said following the deal,
“We are very pleased with the terms of the Ripple investment which supports the Company with permanent capital and additional liquidity. This partnership also provides MoneyGram with the opportunity to improve operating efficiencies and increase earnings and free cash flow.”
Ripple (XRP) Market Performance — (Bullish)
Going back to the crypto market, price action on Ripple’s XRP token following the recent announcement is bullish, albeit the rest of the crypto market is in an upbeat mode.Ripple (XRP) is up 4.6% in the last 24-hours with a value of $0.44 and a market cap just above $17 billion.