Ripple Labs, Inc. has announced that they are selling 4 million of their MoneyGram shares, worth about 33% of their stock in the company.
Relationships Between The Two Companies Remains Unchanged
However, a spokesperson for Ripple Labs stated that this should not be taken as an indication that the two partner companies are having a falling out – rather, Ripple is trying to take advantage of the recent boom in MoneyGram stock price.
“Ripple is a proud partner in MoneyGram’s digital growth transformation. 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.
We will remain a significant shareholder in MoneyGram following the sale – in just over a year, we’ve made incredible progress and look forward to continuing to work alongside Moneygram to transform cross-border payments.”
At the time this article was written, MoneyGram (MGI) stock is valued at USD 7.42, a massive leap from the USD 2.06 price tag they had back on the 2nd of January.
MoneyGram and Ripple Labs partnered up last year, making Ripple Labs’ xRapid technology available to MoneyGram, who were seeking to update their traditional money transfer MO. xRapid uses Ripple (XRP) to speed up payments and add an extra level of security to them by using Blockchain. The xRapid technology has since been rebranded and is now known as the ODL (On-Demand Liquidity) network.
According to a filing with the U.S. Securities and Exchange Commission from the 27th of November, Ripple currently owns 8.6% equity in MoneyGram, equal to 6.24 million shares.
Ripple Labs also have the opportunity to buy 5.96 million MoneyGram shares under a warrant – however, seeing as Ripple Labs have already put up the aforementioned 4 million MGI shares for sales, this seems unlikely for the moment.
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