Ripple Exits from 33% of Its MoneyGram Investment

Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term giant, Ripple is cashing out a third of its total stake in remittance provider, MoneyGram for the first time after the investment last year.

As revealed in a recent US Securities Exchange and Commission filing, Ripple currently holds 6.22 million shares of MoneyGram along with a warrant, which allows the blockchain startup to purchase another 5.95 million shares. Adding all this up, Ripple is holding a total of 12.2 million shares, which is 17 percent of MoneyGram’s outstanding shares.

Ripple is now selling up to 4 million shares from its MoneyGram holdings. This constitutes roughly 33 percent of its total holdings in the remittance company.

The San Fransisco-headquartered company has authorized an unnamed third-party to conduct the sale on behalf of it by March 31, 2021.

“This is purely a judicious financial decision to realize some gains on Ripple's MGI [Moneygram International] investment and is in no way a reflection of the current state of our partnership,” a Ripple spokesperson told the press.

A Profitable Exit

Ripple bought stakes in MoneyGram last year, promising a total of $50 million investment in the company.

Additionally, MoneyGram agreed to use XRP in the foreign exchange settlements for cross-border payments. The remittance company has been using Ripple’s on-demand liquidity (ODL) network for settlements across Europe, Australia and the Philippines since June 2019.

During the initial investment, Ripple paid a 183 percent premium price of $4.10 for each MoneyGram share. But, the company is still exiting from a part of its investment in profits: MoneyGram stocks are publicly trading above $7.4, as of press time.

“We will remain a significant shareholder in MoneyGram following the sale – they are clearly a leader in the global payments space in over 200 countries and territories,” the spokesperson added. “In just over a year, we’ve made incredible progress and look forward to continuing to work alongside MoneyGram to transform cross-border payments.”