Ripple Will Invest $50 Million in MoneyGram International
- Payment Network Ripple Will Invest $50 Million in MoneyGram.
- The current contract comes as a sequel to their 2018 mutual work.
- The contract allows MoneyGram to use XRP and xRapid.
Ripple Inc. is going to invest up to $50 million in MoneyGram International Inc. according to The Wall Street Journal. This deal will rank the American startup and issuer of XRP among the first crypto-related companies to invest in a leading American publicly listed company.
Ripple agreed on buying $30 million MoneyGram stock with guarantees of $4,10 per stock which is almost three times more than the price from their last stock exchange session of $1,45.
Furthermore, the agreement includes a guarantee that Ripple will buy $20 million of any newly issued stock. This agreement is active for the next two years at a price of $4,10 for a share. The contract allows MoneyGram to use XRP and xRapid, Ripple’s payment network, as a backoffice method for their settlement operations.
The current contract comes as a sequel to their 2018 mutual work. Last year MoneyGram used Ripple’s cryptocurrency through their testing platform.
Ripple’s Chief Executive Brad Garlinghouse commented on the significance of the move:
“This deal is a major milestone for the entire industry.”
This news, should not come as surprise as Ripple already has numerous banks as customers, including Banco Santander, UBS Group and Banco Bilbao. As for MoneyGram, they are still ranked number 2 in the money transfer sector after Western Union.
- A federal judge ruled that the sale of XRP through exchanges and algorithms did not qualify as selling securities, which could have a major impact on several SEC lawsuits.
- The institutional sale of the token, however, did violate federal securities laws, and the lawsuit between the SEC and Ripple will have to go to trial.
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- These documents are seen as central in Ripple’s battle against the SEC, which in 2020 accused the company of selling its XRP token without registering it as a security.
- The documents in question are internal emails, text messages, and expert reports that followed Hinman’s 2018 speech, in which he said ETH and BTC were not securities.
- The exchange argues that the SEC failed to provide a “fair notice” that selling XRP was illegal, and that it previously made public statements that those transactions were lawful.
- Coinbase also pointed out that the SEC is yet to provide clear guidance to crypto businesses, and that it keeps being inconsistent about its enforcement approach.