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
For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.