Market Pulse

Blockchain company Ripple invests in MoneyGram to power cross-border payments, shares explode higher

Blockchain company Ripple announced an investment in and partnership with MoneyGram International Inc. mgi+0.75% Monday afternoon, sending MoneyGram shares soaring more than 100%. Ripple, which is known for its XRP xrpusd-0.47% cryptocurrency and blockchain technology, agreed to purchase $30 million worth of freshly created MoneyGram shares at $4.10 apiece, and can purchase another $20 million more at its discretion at a minimum of $4.10. MoneyGram shares closed Monday at $1.45, but exploded higher after the announcement, recently topping $3 in after-hours trading. The cost of an XRP coin jumped more than 5% immediately after the announcement. MoneyGram will use Ripple's XRP technology to handle cross-border transfers of digital funds for at least two years under the deal. "Through this strategic partnership, MoneyGram will be able to settle key currencies and match the timing of funding with its settlement requirements, reducing operating costs, working capital needs and improving earnings and free cash flow," MoneyGram said in the announcement.

See original version of this story