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Blockchain startup Ripple buys $30 mln stake in MoneyGram

Credit: REUTERS/HEINZ-PETER BADER

Blockchain firm Ripple has bought $30 million worth of shares and warrants in MoneyGram International Inc, the two companies said on Monday, as they partner to use Ripple's product for cross-border payment and foreign exchange settlement.

June 17 (Reuters) - Blockchain firm Ripple has bought $30 million worth of shares and warrants in MoneyGram International Inc MGI.O, the two companies said on Monday, as they partner to use Ripple's product for cross-border payment and foreign exchange settlement.

Ripple bought MoneyGram's stock at $4.10 per share, representing a premium of about 183% to its Monday closing price. The partnership will initially be for two years, MoneyGram said.

Shares of MoneyGram surged about 77% to $2.56 after the closing bell.

Ripple may also buy additional common stock or warrants for up to $20 million at a minimum price of $4.10 per share, MoneyGram said.

The partnership will focus on Ripple's xRapid, a platform for cross-border payments that uses XRP, a virtual currency powered by blockchain to send and receive currencies.

"Through Ripple's xRapid product, we will have the ability to instantly settle funds from U.S. dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management," MoneyGram Chief Executive Officer Alex Holmes said in a statement.

(Reporting by Soundarya J in Bengaluru; Editing by Maju Samuel)

((soundarya.j@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 2153; Reuters Messaging: soundarya.j.thomsonreuters.com@reuters.net))

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