The partnership will focus on Ripple's xRapid, a platform for cross-border payments that uses XRP.
Blockchain firm Ripple has bought $30 million worth of shares and warrants in MoneyGram International Inc, the two companies said on Monday, as they partner to use Ripple's product for cross-border payment and foreign exchange settlement.
Ripple bought MoneyGram's stock at $4.10 per share, representing a premium of about 183% to its Monday closing price. The partnership will initially be for two years, MoneyGram said.
Shares of MoneyGram surged about 77% to $2.56 after the closing bell.
Ripple may also buy additional common stock or warrants for up to $20 million at a minimum price of $4.10 per share, MoneyGram said.
The partnership will focus on Ripple's xRapid, a platform for cross-border payments that uses XRP, a virtual currency powered by blockchain to send and receive currencies.
"Through Ripple's xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionise our operations and dramatically streamline our global liquidity management," MoneyGram Chief Executive Officer Alex Holmes said in a statement.
© Thomson Reuters 2019
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