MoneyGram and blockchain company Ripple strike a deal that has MoneyGram stock jumping

MoneyGram International Inc. is officially getting on the blockchain, and will be rewarded handsomely by a prominent company in the cryptocurrency space.

The money-transfer service announced Monday afternoon that it has agreed to a deal with blockchain company Ripple that involves an investment of up to $50 million at prices nearly three times the closing price of MoneyGram

MGI, -2.68%

stock. MoneyGram will use Ripple’s XRP

XRPUSD, -1.32%

technology to handle cross-border transfers of digital funds for at least two years under the deal.

Ripple agreed to purchase $30 million worth of freshly created MoneyGram shares at $4.10 apiece, and can purchase another $20 million more at its discretion at a minimum of $4.10. MoneyGram shares closed Monday at $1.45, but exploded higher after the announcement, close to $4 a…

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