The CEO of Ripple, Brad Garlinghouse, says he wants to make further investments in the blockchain space.
Brad Garlinghouse’s comments came during an interview with Yahoo Finance UK’s Oscar Williams-Grut published on August 9th, 2019.
Garlinghouse said his company was working on multiple potential deals following the $30 million investment in MoneyGram.
MoneyGram issued a press release stating that it had signed an agreement with cross-border payments specialist Ripple that would allow MoneyGram to use Ripple’s XRP-powered product xRapid as part of MoneyGram’s “cross-border payment process.”
The announcement also highlighted that:
- this partnership would initially be two years;
- Ripple would become MoneyGram’s “key partner for cross-border settlement using digital assets”;
- Ripple had made “an initial investment of $30 million in MoneyGram equity”;
- Ripple had “purchased the newly-issued common stock (including the shares underlying the warrant) from MoneyGram at $4.10 per share” (which was significantly higher than MoneyGram’s stock price at the time); and
- MoneyGram has the option to make Ripple invest another $20 million (again, paying $4.10 per share).
The press release also stated:
Today, MoneyGram relies on traditional foreign exchange markets to meet its settlement obligations, which require advance purchases of most currencies. Through this strategic partnership, MoneyGram will be able to settle key currencies and match the timing of funding with its settlement requirements, reducing operating costs, working capital needs and improving earnings and free cash flow.