MoneyGram, a large remittance network company, announced that Ripple, a blockchain-based payment company, has completed its initial commitment and completed its last $ 20 million investment.
In a November 25 press release, MoneyGram announced that Ripple Labs Inc. has made a final $ 20 million equity investment in MoneyGram as part of Ripple's initial $ 50 million equity investment commitment.
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Total investment of USD 50 million
The two companies reached a two-year strategic partnership in June this year to leverage digital assets for cross-border payments and foreign exchange settlement. As part of the agreement, MoneyGram will be able to obtain up to $ 50 million in funding from Ripple in exchange for equity.
According to reports, MoneyGram will use Ripple's xRapid liquidity product to allow remittances in one currency and immediate settlement in the target currency. By using Ripple's XRP tokens for such transfers, xRapid is said to make such transactions faster than using fiat currencies or other major digital assets. Ripple CEO Brad Garlinghouse commented on the latest investment:
"Last month, we announced that MoneyGram began using On-Demand Liquidity (ODL) to pay the Philippines, and we are pleased to support the further expansion of MoneyGram into Europe and Australia. Digital assets and blockchain technology have the potential Payments have a huge impact — MoneyGram and Ripple are an example of this. In June, we announced this partnership and it was encouraging to see rapid growth and gains become reality. "
Ripple bought a stake in MoneyGram for $ 4.10 per share and it is reported that the company will now own 9.95% of the common shares of MoneyGram.
Most cryptocurrencies may return to zero
In early November, Garlinghouse claimed that so far there are too many cryptocurrencies, and predicts that only 1% of digital currencies will remain, and that this few cryptocurrency projects will change the rules of the game and grow significantly in the coming decades. Focus on solving practical problems for real customers.
He pointed out that there are very few companies that can truly meet the needs of customers, and that the vast majority of them "may be zero." He said:
"As long as there is a new market, many people enter the market and try to prove that they can solve problems and meet customer needs."