Shares of MoneyGram International soared Tuesday after blockchain startup Ripple said it plans to invest up to $50 million in the company. Ripple, the company behind the XRP cryptocurrency, said it has agreed to buy $30 million of MoneyGram shares and warrants to buy stock at $4.10 a share. The deal also includes additional warrants for up to $20 million of newly issued stock, also at $4.
10 a share. In a strategic partnership, Ripple will become @MoneyGrams 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) June 17, 2019 The deal comes amid a wave of recent announcements about the future of payments, in particular non-cash ones.
Facebook last week announced that it was developing its own cryptocurrency and payment system called Libra, backed by a consortium of large industry players and investment firms. The company revealed details in a white paper released Tuesday. For MoneyGram and Ripple, its about the currency itself rather than the system.
MoneyGram already services 200 countries and territories, with roughly $600 billion processed in the global remittance market. Will Facebooks New Crypto Venture Kill Bitcoin or Fuel the Fire? How Facebook Might Make Money From Its Highly Anticipated Cryptocurrency The two companies plan to work together to both expand beyond using traditional foreign exchange markets, which requires pre-funding accounts, and to reduce settlement fees as well as settlement times - to pennies and seconds from dollars and minutes.
. Shares of MoneyGram were up 112.4% in trading Tuesday to $3.08. Facebook is a holding in Jim Cramers Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB? Learn more now.,..