Blockchain payments firm Ripple has made an investment in MoneyGram International, Inc. (NASDAQ: MGI) and will also allow the group to use its XRP cryptocurrency as part of the cross-border payments process.
Ripple made an initial investment of $30 million in the money transfer company, made up of common stock and a warrant to purchase common stock. Ripple purchased newly-issued common stock including the shares underlying the warrant from MoneyGram at $4.10 per share.
"As the payments industry evolves, we are focused on continuing to improve our platform and utilizing the best technology as part of our overall settlement process," said Alex Holmes, MoneyGram CEO.
"MoneyGram is one of the largest money transfer companies in the world and the partnership will continue to further the reach of Ripple's network. I look forward to a long-term, very strategic partnership between our companies," said Brad Garlinghouse, CEO of Ripple.
MoneyGram shares were trading up 130% at $3.33 in Tuesday's pre-market session.
The price of XRP traded around 44 cents at time of publication.
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