Blockchain-company will invest up to $ 50 million in Western Union direct competitor. The payment system will use altcoin for making money transfers.

Ripple began working with MoneyGram. As part of the agreement, the blockchain-company will buy back from 8% to 10% of the payment system’s shares at a high price of $ 4.1 (the real exchange rate currently stands at $ 1.49) for $ 30 million. Also in the next two years, the platform can receive $ 20 million of additional investments writes Fortune.

MoneyGram will use the XRP token to make transfers. The company has tested the xRapid system over the past year, but it did not provide convincing results in the context of cost savings. According to the head of Ripple Brad Garlinghouse, everything has changed in recent months, when altcoin gained the necessary liquidity, thanks to this it was possible to eliminate the risks associated with its volatility.

After the announcement of cooperation, the coin rate rose sharply by 7% to $ 0.459, and its capitalization increased from $ 18.3 billion to $ 19.3 billion. Then the price of the token decreased, now it is $ 0.442 with a capitalization of $ 18.9 billion.

More news about cryptocurrencies can be found in our RBC-Crypto telegram channel.