Ripple’s partnership with MoneyGram that was announced earlier according to CEO Brad Garlinghouse says that the company is now looking into more investments and acquisitions as we read in some of the best cryptocurrency news sites.
Ripple’s partnership with MoneyGram which is the second-largest remittances company worldwide made a 10% purchase in stakes in the entity with the option to increase the investment by more than $20 million in the next few years. MoneyGram started using Ripple’s xRapid Liquidity product back on August 3rd which was the central deal of the $30 million business as revealed by the MoneyGram CEO Alex Holmes during the second-quarter earnings call that happened at the beginning of his month. XRapid uses the XRP token to facilitate instant settlement of money that is sent in one currency into a destination currency but it is not used by many Ripple’s other clients such as Standard Chartered, American Express, and Santander. In an interview with Yahoo! Finance, Garlinghouse denied the claims that Ripple forked out of a premium on MoneyGram shares to ensure that the company will adopt the technology:
‘“I wouldn’t characterize it as an inducement […] we’re getting more and more customers to sign up and we’re seeing that value. If we want to accelerate that, we have the option of doing things that might be perceived and characterized by some as an inducement.”
Garlinghouse stated that Ripple paid a huge price for the deal given the reluctance of privacy equity company Thomas H. Lee Partners to sell at market value. The shares of the remittances company dropped almost 80 percent in the past 12 months leading up to the partnership between Ripple and Moneygram. The CEO noted:
“This is a big deal. If I were betting now, a year from now the Moneygram deal will have a more consequential impact on the crypto markets than the Libra white paper.”
As noted in the latest cryptocurrency news, xRapid volumes up to 170% between the first and second quarter of this year and it is way ahead of Moneygram’s development. Ripple is now signing on two new financial institutions with more than 200 contracts with clients across the world.
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