- Ripple, which is one of the biggest names on the financial technology scene and a key provider of blockchain technology, holds a stake in the cross-border payments firm MoneyGram.
- However, it is now going to sell some of that stake in order to “realize some gains” on the initial investment it made.
- A spokesperson for Ripple emphasised that the move was not an indication of any problems in the pairing between the two firms.
Leading financial technology provider Ripple has announced that it will sell some of its shares in the cross-border payments firm MoneyGram.
Ripple, which is known for its blockchain technology, will sell around 4m of the shares it holds in the firm.
Overall, this represents around a third of the shares that the company holds in MoneyGram.
According to press reports, MoneyGram’s shares have surged in value in recent times.
Across the year to the current date, MoneyGram’s shares have seen a rise of over 250%.
Ripple purchased the shares last year at $4.10 per share.
Ripple invested tens of millions of US dollars into MoneyGram in late 2019.
MoneyGram, for its part, uses a settlement network provided by Ripple to power its cross-border payments network.
This network, which is known as ‘on-demand liquidity’ (ODL), is used by MoneyGram in various important markets such as Europe.
It is also used in the Philippines and Australia.
It is believed that the decision to sell this portion of the investment is merely an attempt by Ripple to release cash and realise a profit following its purchase of MoneyGram shares last year.
However, a spokesperson for Ripple confirmed that it was not making the decision due to a fear over the partnership between the two companies.
“This is purely a judicious financial decision to realize some gains on Ripple’s MoneyGram International investment,” a spokesperson for the company said.
The spokesperson went on to emphasise that it would continue to be a major stakeholder in MoneyGram as time goes on.
The company had, the spokesperson said, found lots of success in the year of their partnership so far.
“We will remain a significant shareholder in MoneyGram following the sale,” the spokesperson said.
“In just over a year, we’ve made incredible progress and look forward to continuing to work alongside MoneyGram to transform cross-border payments,” the spokesperson said.
Despite the sale, however, Ripple will retain a significant number of shares in MoneyGram.
It will, still possess just over 2m shares in the company.
This will equate to more than 3% of MoneyGram’s total outstanding shares.
It also retains the choice to purchase close to 6m shares in the future.
At the present moment, however, it does not appear to be willing to exercise that option.
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