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.”
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.