Major money transmission network MoneyGram has announced that blockchain-based payments firm Ripple has completed its original commitment with a final $20 million investment.
In a Nov. 25 press release, MoneyGram announced that Ripple Labs Inc. has made a final $20 million equity investment in MoneyGram as part of Ripple’s original $50 million equity investment commitment.
A total investment of $50 million
In June, the two companies entered into a 2-year-strategic partnership to collaborate in cross-border payments and foreign exchange settlements with digital assets. As part of the agreement, MoneyGram would be able to draw up to $50 million dollars from Ripple in exchange for equity.
MoneyGram will reportedly use Ripple’s xRapid liquidity product to allow for money to be sent in one currency and instantly settled in the destination currency. By using Ripple’s XRP token for such transfers, xRapid can purportedly settle such transactions faster than with fiat currencies or other major digital assets. Ripple’s CEO Brad Garlinghouse commented on the latest investment:
«Last month, we announced that MoneyGram began using On-Demand Liquidity for payments to the Philippines, and we’re excited to support MoneyGram’s further expansion into Europe and Australia. Digital assets and blockchain technology have the potential to make a tremendous impact on cross-border payments — MoneyGram and Ripple is an example of that […] In June, we announced this partnership, and it’s encouraging to see the rapid growth and benefits come to life.»
Ripple purchased the equity from MoneyGram at $4.10 per share and will now own reportedly 9.95% of MoneyGram’s common stock.
Majority of crypto will probably go to zero
At the beginning of November, Garlinghouse claimed that there are too many cryptocurrencies so far, forecasting that only 1% of the total are here to stay and that this small number of crypto projects will be game-changing and grow significantly in coming decades since they will be focused on solving real problems for real customers.
He hinted that very few will actually be able to meet customer needs, arguing that the vast majority of them “probably goes to zero.” He stated:
“Anytime there is a new market, there are a lot of people that run into that market and try to show that they can solve a problem, they can deliver a customer need.”