Goldman Sachs has sold more than $6 million worth of shares in MoneyGram, the remittance company that provides liquidity for Ripple’s XRP settlement layer.
- The U.S. investment bank and its subsidiaries this week informed the Securities and Exchange Commission (SEC) it had sold over 14,000 shares of Series D Preferred Stock in MoneyGram between August 5 and August 10.
- This is convertible into nearly 1.8 million units of common stock, worth a total of $6.5 million on the Nasdaq at press time.
- Based in Texas, MoneyGram has collaborated with Ripple since it started testing XRP for its international payments rails in January 2018.
- Since H2 2019, the remittance company has received more than $40 million in "market development fees" from Ripple Labs in return for providing liquidity to its On-Demand Liquidity (ODL) network.
- Ripple completed the purchase of a $50 million equity stake in MoneyGram last November.
- Despite the sell-off, Goldman Sachs still owns well over 18 million units of common stock – a larger stake than Ripple Labs – at a total of $65 million worth.
- It's unclear why Goldman decided to sell approximately 9% of its position in MoneyGram.