Earlier this year, it was announced that Ripple had made an investment commitment to pump $50 million into equity, for international payment settlement giant Moneygram. Now according to a recently published MoneyGram news release, Ripple has completed its side of the deal, by making the remaining payment of $20 million as the company had made a previous $30 million investment. This means that Ripple now owns 9.95 percent of MoneyGram’s common stock.
According to the publication, the equity was transacted at the rate of $4.10 per share and the funding is directed at buoying MoneyGram’s operations, especially as the company grows, handles more payment, and creates more use cases for Ripple’s On-Demand Liquidity (ODL).
Speaking on the development, MoneyGram Chairman and CEO Alex Holmes, has described the partnership between both companies as “transformative” for the traditional and crypto sectors, especially as transactions are now being settled within seconds. He added:
“Partnerships with companies like Ripple support innovation and allow us to invest in creating better customer experiences. I anticipate furthering our growth into new corridors and exploring new products and services.”
With On-Demand Liquidity, MoneyGram’s business has been significantly improved. The company has moved about 10 percent of all of its cross-border transactions involving the Mexican Peso, to the ODL platform. Since Mexico has been significantly successful, MoneyGram is now using ODL in Europe, Australia, and the Philippines.
ODL is a Ripple feature formerly known as xRapid, which allows cross-border payments to be settled very quickly and at very little cost as well. The platform uses the XRP digital currency as a bridge for the two fiats in every transaction, allowing the payments to move at unmatched speed.
Back when the partnership was first announced, Ripple CEO Brad Garlinghouse expressed optimism about the collaboration, describing it as a “major milestone” not just for both companies, but also for the future of cross-border payments in general. Ripple is not just growing its RippleNet, but also slowly increasing XRP adoption.