MoneyGram’s shares doubled in value after it announced a partnership with the cryptocurrency company Ripple.
Ripple, known for its blockchain service and cheaper cross-border payments, invested $30 million in the deal, with a future option to purchase up to $20 million more in shares.
MoneyGram’s stock increased by 167.6% from $2.43 to $3.88, while its rival Western Union decreased in stock value by 2.4%.
This new partnership comes after Facebook announced that it would create and launch its own digital currency called Libra. Libra’s main appeal is the decrease in fees that users would have to pay when transferring money internationally. The digital currency is set to launch within six to 12 months.
The surge in stock value was the largest one-day percentage gain that MoneyGram has experienced. The company’s stock never fully recovered from that $1.5 billion it lost in mortgage-backed securities during the 2008 financial crisis.
MoneyGram’s venture into cryptocurrency marks a shift in the international money-transfer service provider industry.