MoneyGram shares soared Tuesday after it
announced a new partnership with the cryptocurrency company Ripple.
The two-year deal allows MoneyGram to
use Ripple’s blockchain service for
cheaper cross-border payments. Ripple,
based in San Francisco, invested $30
million in MoneyGram as part of the deal,
with an option to purchase up to an
additional $20 million in shares at $4.10
each.
Blockchain is a digital record that is often used to
track the use of digital money such as Ripple and
Bitcoin.
Shares in Dallas-based MoneyGram had
their largest one-day percentage gain ever
Tuesday, jumping 168%. The company’s
stock, however, has never fully recovered
from the global economic crisis 10 years ago
when shares were close to $300 each. The
company lost about $1.5 billion investing in
mortgage-backed securities.