MoneyGram, a large financial transmission network, recently announced that firmRipple had invested an additional $20 million dollars, completing an original commitment they had agreed to. This equity investment is part of a $50 million dollar investment commitment made by Ripple Labs Inc. in MoneyGram, according to a recent report.
$50 Million Dollar Investment
Back over the summer, both MoneyGram and Ripple formed a collaborative 2-year strategic relationship in digital assets and foreign exchange settlements, as well as cross-border payments. MoneyGram was allowed to take up to $50 million dollars from Ripple to use for equity as part of their agreement.
Ripple's liquidity product, xRapid, will be utilized by MoneyGram to send money in one currency and quickly transfer it to the appropriate currency in its new destination. Ripple's XRP token will be used to make the transfers, which can settle transactions quicker than other digital assets such as flat currencies.
Brad Garlinghouse, the CEO of Ripple, is excited about the new On-Demand Liquidity that MoneyGram is using for cross-border payments in the Philippines. He looks forward to MoneyGram's expansion into Australia and Europe, which would not have been possible without blockchain technology. The benefits and fast expansion are encouraging signs for both his business as well as MoneyGram's.
MoneyGram's equity was purchased by Ripple at $4.10 for each share. They now own around 9.95% of MoneyGram's stock.
Cryptocrrencies Will Eventually Reach Zero
Garlinghouse mentioned in early November that cryptocurrencies have grown exponentially to the point where there are too many, and predicts that only around 1% of them will stick around. Of that percentage, the few crypto projects that do make it will significantly grow and become game-changers in the next couple of decades, as they will be more focused on providing solutions for actual customers. He believes that only a few cryptocurrencies will meet customer demands while the rest of them eventually reach zero.
According to Garlinghouse, whenever there are new cryptocurrency markets, large groups of people enter them believing that they, too, can provide solutions to suit a customer's needs.