Reporting from Trustnodes, MoneyGram's stock price skyrocketed, up from US $ 1.45 to US $ 3.04. MoneyGram's stock market capitalization increased by US $ 80 million, while Western Union fell 2%. This price leap occurred after the announcement of the MoneyGram partnership with Ripple, the company behind the XRP crypto currency. Alex Holmes, Chair and CEO of MoneyGram, said, "Through xRapid Ripple products, we will have the ability to direct funds transactions from the US dollar to destination currencies anytime, 24/7, which potentially revolutionizes our operations and dramatically streamlines global liquidity management we."
Ripple pays US $ 4.10 per share to obtain 8% to 10% of MoneyGram's total shares. The price is almost 4x greater than the trade price before the announcement. That makes Ripple invest US $ 30 million in this one-century company, which operates in more than 200 countries with a global network of around 347,000 agent offices. MoneyGram further has the option of cashing in US $ 20 million for the next two years. Ripple CEO Brad Garlinghouse said, "This will eliminate the need to use foreign bank accounts. That's why MoneyGram has negative working capital. This will help customers and also facilitate their financial operations. "
MoneyGram's specialization in international money transfers has the potential to demonstrate the ability of xRapid Ripple to bypass conventional banking; This can operate on any crypto, with high-level processes that are rather simple and straight forward. You can basically send dollars from your account to the crypto exchange. You then buy XRP in this case, but generally you can buy bitcoin or ethereum or any crypto. Then you send the crypto to a local market, say the exchange in South Africa or in Argentina. There you sell it for ZAR South Africa or ARS Argentina and enter it into your bank account in South Africa or Argentina.
This saves costs and is faster for international transfers as one of the most prominent uses of crypto. In partnership with MoneyGram, it has the potential to be a game changer because MoneyGram has many kiosks in almost all places. Ripple prices, however, have not reacted much because of this partnership. Ripple increases by only 1%, maybe because the market thinks they pay more. While MoneyGram does not only rise to near 4x higher than the initial price, but also now MoneyGram can appear a little more modern.