Yesterday Ripple announced its “current” partnership with Moneygram was ending by mutual agreement. A couple of weeks ago, the money transfer company said it stopped using Ripple’s On Demand Liquidity (ODL) solution for the four currencies where it was active. This follows the SEC’s December lawsuit against Ripple alleging XRP is a security.
ODL uses XRP for transfers enabling foreign currency transactions and cross-border payments. The underlying messaging solution RippleNet, that several banks use does not use XRP.
Last week Moneygram itself was the subject of a class-action lawsuit relating to its use of XRP. Ripple and Moneygram did a deal in 2019 in which Ripple agreed to make $50 million of XRP available to Moneygram in exchange for an equity interest. The Moneygram lawsuit alleges that the company should have been aware that if XRP was found to be a security it would impact Moneygram’s bottom line because it would lose the market development fees.
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