On June 17, a blockchain company Ripple announced the purchase of shares of the American financial company MoneyGram for $30 million. According to the contract, in two years, MoneyGram will be able to sell its shares to Ripple for another $20 million.
In a strategic partnership, Ripple will become @MoneyGram‘s global partner for cross-border payment and foreign exchange settlement, using XRP. https://t.co/4YlnFWy1ha https://t.co/aJnchpzj5k pic.twitter.com/cyald9sikr
— Ripple (@Ripple) 17 июня 2019 г.
The market value of MoneyGram’s stock at the time of the deal was $1.45. However, for Ripple, each security cost $4.10. Why the company decided to overpay almost three times remains a mystery.
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The contract states that MoneyGram will use XRP cryptocurrency during money transfers. Now the company uses the services of foreign exchanges that require you to make an advance payment. According to the staff of Ripple and MoneyGram, switching to XRP tokens will reduce transaction processing costs from $30 to less than a cent and reduce the time it takes to transfer money from 15-60 minutes to a few seconds.
MoneyGram СEO Alex Holmes said that with the help of Ripple’s xRapid payment solution, the company will be able to instantly convert US dollars to the transaction recipient’s currency. In his opinion, the technology of a blockchain startup will revolutionize operational processes and provide an opportunity to optimize the liquidity management procedure. Ripple is looking forward to a long-term strategic partnership with MoneyGram.
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