MoneyGram to see the impact on its business arrangement from SEC's lawsuit against Ripple

Thursday 24 December 2020 09:47 CET | News

MoneyGram has yet to see the impact on its business arrangement with Ripple from the US Securities and Exchange Commission’s (SEC) lawsuit against the latter company.

‘MoneyGram will continue to monitor the situation as it evolves’, a company spokesperson told CoinDesk in an emailed statement. Furthermore, the company ‘has continued to utilise its other traditional FX trading counterparties throughout the term of the agreement with Ripple’.

The SEC alleged that Ripple used XRP, the cryptocurrency two of its founders created, to conduct an ongoing USD 1.3 billion sales of unregistered securities.

Ripple owns more than 4% of MoneyGram and paid MoneyGram USD 9.3 million in Q3 2020 for providing liquidity for Ripple’s XRP-based cross-border settlement network. All in, Ripple has given MoneyGram USD 52 million for using Ripple’s on-demand liquidity (ODL) service, CoinDesk reported.

MoneyGram, currently the second-largest money transfer provider in the world behind Western Union, has used Ripple’s ODL to move in and out of four currencies since June 2019. In the complaint, the SEC alleges that ‘onboarding onto ODL was not organic or market-driven’ but rather ‘subsidised by Ripple’.

MoneyGram declined to comment further, the online publication added.

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Keywords: MoneyGram, XRP, Ripple, SEC, ODL, cross-border settlement, payments , money transfers
Categories: DeFi & Crypto & Web3
Countries: World
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DeFi & Crypto & Web3