According to the Wall Street Journal and Fortune, Ripple will spend $ 30 million on the purchase of shares at $ 4.10 apiece. And over the next two years, MoneyGram has the option to sell another $ 20 million worth of shares to Ripple for the same price. At the time of going to print, MoneyGram shares are trading at around $ 1.45 apiece, which means that the purchase price of ripple is close to three times the current market value of ripple's xRapid transaction product, the Journal notes. MoneyGram said it tested the token in January 2018, CoinDesk reported at the time.
MoneyGram already serves 200 countries and territories, with approximately $ 600 billion processed on the global remittance market. Currently, the company uses traditional currency markets, which require pre-financing accounts. Ripple and MoneyGram expect settlement fees of $ 30 per transaction to drop to a fraction of a penny, while execution times are expected to fall from 1
We need to continue to improve our platform and provide the most effective fund-raising solution from point A to point B.
"Ripple's xRapid product enables us to settle funds immediately This could revolutionize our business and dramatically streamline our global liquidity management.
Brad Garlinghouse, CEO of Ripple, also said in a statement that the partnership will allow MoneyGram "to significantly improve operations and give millions of people around the world the opportunity to benefit from improved efficiency. "
" This is an important milestone in the transformation of Cross-B. I am looking forward to a long-term, very strategic partnership between our companies.
Brad Garlinghouse image about Nikhilesh De for CoinDesk