NEW YORK (AP) — MoneyGram shares have more than doubled in premarket trading after it announced a partnership with the cryptocurrency company Ripple.
The companies said late Monday that the two-year deal will allow MoneyGram to use Ripple’s blockchain service for cheaper cross-border payments. San Francisco-based Ripple invested $30 million in MoneyGram as part of the deal, with an option to purchase up to $20 million more worth of shares at $4.10 per share.
Shares in the Dallas-based MoneyGram rose $2 in premarket trading, or 134%, to $3.47.
The company’s stock traded close to $300 per share in 2006, before the global financial crisis hit in 2007. The company lost about $1.5 billion investing in mortgage-backed securities.
Facebook announced Tuesday that it is launching its own digital currency for its 2 billion users.
