MoneyGram Doubles After Blockchain Startup Ripple Buys Stake
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MoneyGram International Inc. soared in extended trading on Monday after blockchain-technology company Ripple purchased a stake and entered a partnership for international money transfers.
Ripple invested $30 million in shares and warrants at $4.10 a share and has an option to buy $20 million in additional shares or warrants at the same minimum price, according to a statement. MoneyGram will use Ripple’s xRapid product as part of its cross-border payment process in a partnership that has an initial term of two years. The stock surged as much as 148% to $3.60. Larger rival Western Union Co. gained 2.2% post-market.