TL;DR Breakdown
- MoneyGram adopts wait and see approach on SEC, Ripple suite
- MoneyGram distances self from SEC lawsuit
- XRP plunge by 50 percent after SEC lawsuit
International payment firm, MoneyGram has said it is not disturbed by the lawsuit the Security and Exchange Commission (SEC) filed against Ripple its partner firm. MoneyGram said it is unaware of any negative impact on their relationship.
However, the Texas-based money transfer company said although they have not been notified of any negative impact on their commercial agreement Ripple, they would continue to monitor potential impact as developments in the lawsuit evolve.
MoneyGram years back announced that it agreed a strategic partnership with Ripple. The agreement involved Monegram using Ripple’s foreign exchange and blockchain trading platform (xRapid service). The system enabled inexpensive, instant cross-border payments worldwide, reducing the need to hold foreign currency.
Back then, the Texas based firm made cross border payment traditionally. They had to hold foreign currencies in several bank accounts at all times. It was expensive, and restricts capital flows.
The international payment firm also cleared that it still uses its traditional foreign exchange trading counterparties,” and does not need the platform provided by RippleRipple to accomplish its foreign exchange trading needs.
MoneyGram also distanced itself from SEC action saying it is not a party to the lawsuit.
Ripple, SEC bone of contention
The SEC earlier this week announced it has filed a lawsuit against Ripple over sales of its cryptocurrency, XRP. According to SEC XRP is not a crypto, rather security which they (Ripple) made $1.3 billion selling from.
The SEC alleges Ripple raised these funds through unregistered XRP sales to investors worldwide and the US, which is the SEC jurisdiction.
The lawsuit has seen XRP price drop by over 50 percent.
MoneyGram, Santander, others and Ripple
The Texas-based firm is only one of the many partners Ripple has. The XRP backed firm says it has over 300 financial firms it has partnered in over 40 countries globally.
Santander, one of the biggest bank in the world, is one of these firms. The ban partnered Ripple to streamline its international payments.
Standard Chartered, American Express, are some other global brands that have partnered with Ripple.
