Blockchain payments firm Ripple has agreed to invest up to $50m in remittance firm MoneyGram.

Under the agreed terms, Ripple initially invested $30m in MoneyGram’s stock at $4.10 a share.

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Besides, Ripple has the provision to buy up to $20m worth of MoneyGram stock at the same price later.

The two parties also inked a partnership, which enables MoneyGram to leverage the xRapid offering from Ripple that uses its native cryptocurrency XRP.

Under the two-year alliance, Ripple and MoneyGram will join forces on cross-border settlement with digital assets.

MoneyGram chairman and CEO Alex Holmes said: “Through our partnership with Ripple, we will also have the opportunity to further enhance our operations and streamline our global liquidity management.

“Since our initial partnership announced in January 2018, we have gotten to know Ripple and are looking forward to further leveraging the strengths of both of our businesses.”

Ripple CEO Brad Garlinghouse too welcomed the deal, calling it a “huge milestone” in cross-border payments.

“MoneyGram is one of the largest money transfer companies in the world and the partnership will continue to further the reach of Ripple’s network,” Garlinghouse noted.

The latest deal comes shortly after Ripple’s expansion into Brazil.

Meanwhile, MoneyGram was recently in the limelight for its tie-up with Canada Post.

Last year, MoneyGram’s sale to Ant Financial was blocked by the US.