MoneyGram adopts wait-and-see stance after SEC suit against Ripple

The American money-transfer service MoneyGram has not yet seen any “negative impact” on its cooperation with the California blockchain company Ripple due to the U.S. Securities and Exchange Commission (SEC) lawsuit. This is reported by CoinDesk.

Representatives said they would monitor developments. MoneyGram continues to use other traditional counterparties in currency trading throughout the term of its agreement with Ripple.

At present, the service ranks second globally by cross-border money-transfer volume, behind Western Union.

In the summer of 2019 MoneyGram began processing cross-border payments via the On-Demand Liquidity (ODL) system, which uses the XRP token. For interacting with ODL, the service earns commissions in XRP.

In November 2019 Ripple closed a deal worth $50 million with MoneyGram, obtaining 9.95% of its ordinary shares. In the second quarter of 2020 Ripple paid the partner $15 million, in the third — $9.3 million.

During December, MoneyGram CEO Alex Holmes said that over the 18 months of cooperation with the fintech company the number of transactions increased by 220%, and online customers grew by 140%.

In December, the SEC filed a suit against Ripple, its CEO Brad Garlinghouse and co-founder Chris Larsen. According to the regulator, the company sold unregistered securities in the form of XRP tokens to retail investors.

The materials mention the ODL payment network, which has drawn 15 firms from the money-transfer sector.

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