XRP settlement solution generated $2M per week in revenue for MGI

by | May 10, 2021

After the SEC lawsuit and MoneyGram’s statement that it “does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise” media and BTC maxis took advantage to claim that MoneyGram never used XRP.

Background

At Swell 2019 MoneyGram Chairman and CEO Alex Holmes announced on stage at Swell 2019 that the company was currently moving 10% of its transaction volume between the United States and Mexican borders through ODL and planned to expand into four more corridors by the end of the year.

During MoneyGram’s Q3 2019 Earnings Call, a few days earlier, on November 1st, 2019, MoneyGram CEO mentioned that “today, we’ve integrated Ripple onto our standard treasury process to execute foreign currency trades 24/7. Over the quarter, we’ve continued to increase our usage of Ripple’s on-demand liquidity product for a portion of our daily funding needs in Mexico.“ This meant that MoneyGram was using ODL to fund its internal treasury needs.

Even though ODL volumes continued to grow, in June 2020, Ripple made a u-turn, reducing emphasis from large treasury payments—which are traditionally used to fund businesses and services in the absence of real-time transfers—to support individual, low-value transactions, addressing the growing need in remittances and SME payments. According to Ripple, this could (and did) reduce overall ODL transaction volumes.

A few months later the SEC lawsuit followed and MoneyGram’s statement fueled articles like this one, claiming that MoneyGram never used XRP.

$2M per week in revenue

However, it’s the LinkedIn profile of a former MoneyGram employee that sheds light and brings new information regarding MoneyGrams use of XRP. Yale Vinson, MoneyGram’s former Head of Innovation from February 2018 to February 2021 states that he: “Built a settlement solution using Ripple XRP, generating an average of $2M per week in revenue”.

This puts any doubts of whether MoneyGram used XRP or not to rest. Today, MoneyGram is not using RippleNet or XRP after both companies decided to wind down their partnership agreement. However, the companies committed to revisiting their partnership in the future.