MoneyGram distances itself from Ripple, SBI Holdings extends support

MoneyGram, currently the second-largest money transfer provider in the world behind Western Union, is distancing itself from Ripple in light of the Securities and Exchange Commission (SEC) lawsuit.

MoneyGram distances itself from Ripple, SBI Holdings extends support

MoneyGram, currently the second-largest money transfer provider in the world behind Western Union, is distancing itself from Ripple in light of the Securities and Exchange Commission (SEC) lawsuit. Ripple owns more than 4% of MoneyGram and Ripple has given MoneyGram over $52 million for using Ripple’s on-demand liquidity (ODL) service, but Ripple is facing worst-case scenario for its business as XRP risks being delisted from nearly all major U.S. exchanges. XRP fell as much as 31% on Tuesday after Coinbase said it would suspend trading by mid-January. MoneyGram issued a statement last week in light of the recent lawsuit, "MoneyGram has had a commercial agreement with Ripple since June 2019; this agreement represents the use of Ripple's foreign exchange (FX) blockchain trading platform (ODL) for the purchase or sale of four currencies. MoneyGram has continued to utilize its other traditional FX trading counterparties throughout the term of the agreement with Ripple, and is not dependent on the Ripple platform to accomplish its FX trading needs." MoneyGram was not listed as a conspirator in the SEC lawsuit, but the $52 million investment from Ripple will certainly be under scrutiny. MoneyGram used Ripple’s ODL to exchange four different currency pairs since June 2019. SBI Holdings, the Japanese banking giant and number two strategic partner of Ripple, released a statement extending overwhelming support for Ripple and will continue to use its services —pointing to the fact that 90% of its customers and 80% of remittance volumes come from outside the U.S. jurisdiction. The SEC has provided guidance protections for up to five years for digital asset brokers holding custody of security tokens, which may be the fate of Ripple.