Money transfer company, MoneyGram, has received $20m in funding to complete the originally proposed $50m worth of investment.
Ripple is a blockchain service provider that offers technology to services that require easy global payment transactions.
Ripple and MoneyGram agreed to a 2-year partnership in June this year to utilise their digital advantages so that cross-border payments and foreign exchange settlements would become less complicated. The deal stated that Ripple would receive equity in exchange for $50m in investment.
Ripple paid $4.10 per share for its part of MoneyGram´s equity and now owns 9.95 per cent of the company´s outstanding common stock and approximately 15 per cent on a fully-diluted basis including non-voting warrants held by Ripple.
After the partnership was formed, Ripple supplied $30m as the primary stage of funding. In a press release on 25 November, MoneyGram confirmed that the remaining $20m had been transferred to complete the $50m equity commitment.
The two companies started their collaboration back in 2018 after MoneyGram signed up to test a pilot program that was designed to trial digital token XRP that aimed to reduce the costs of its money transfers.
The payments are expected to support MoneyGram´s continuing use of Ripple´s On-Demand Liquidity (ODL) service that is still being employed so that transfers can be made almost instantly and at an extremely low cost.
Ripple´s ODL solution is now responsible for processing 10 per cent of its Mexican Peso foreign exchange trading volume through MoneyGram and the XRP´s liquidity index recently reached an all-time high as it surpassed the 6 million mark on Bitso, the number one Mexican exchange.
Alex Holmes, chair and CEO of MoneyGram said: “Partnerships with companies like Ripple support innovation and allow us to invest in creating better customer experiences. I anticipate furthering our growth into new corridors and exploring new products and services.”