Banco Santander: the loyal partner at Ripple’s side?
As one partner after another walks away from Ripple, Santander remains loyal to the FinTech. But will it stay that way?
The legal battle between the Securities and Exchange Commission (SEC) and crypto start-up Ripple is arguably the „never-ending story“ of the crypto space at the moment. Almost every day, new details come to light. Sometimes in Bitcoin Billionaire sam Ripple’s favour, but often rather to its disadvantage. As a reminder, the SEC filed charges against the San Francisco-based start-up last December. The accusation: according to the authority, the in-house cryptocurrency XRP is a so-called security token and should therefore have been registered with the SEC before the start of sales. Since this did not happen, the SEC believes that Ripple is trading with unregistered securities and is demanding a penalty payment of 1.3 billion US dollars. This laid the foundation for the crypto drama that followed and the chain reaction it triggered was not long in coming.
Partnership dissolutions, investment clawbacks and finally also removals of XRP trading pairs on various crypto exchanges in the USA were the result. Only recently, for example, the financial services provider MoneyGram distanced itself from the Californian FinTech. However, one partner remains loyal to the start-up – Banco Santander. The Spanish universal bank is one of the largest European financial institutions in terms of market capitalisation.
Partnership to speed up transactions
In July, the company announced a partnership with Ripple Labs to launch its own mobile payment app „One Pay FX“. For this, Santander relies on „xCurrent“, a payment messaging system from Ripple to process fiat-to-fiat transactions in real time by using messages to clarify and verify transaction details. At the time, Santander CTO Ed Metzger said of the collaboration:
‚When our customers pointed out to us that international payments could be better, we partnered with Ripple to explore how blockchain could make transactions faster, cheaper and more transparent.
Ed Metzger, CTO Santander, July 2020
But how does the bank see this partnership today? Would the company continue to cooperate even if Ripple was convicted? BTC-ECHO asked for comment. Santander did not give an assessment of the legal dispute or the possible effects on the cooperation, and the bank also remained silent about the possible future of cryptocurrencies in the banking sector. This is despite the fact that the Spanish financial institution says it wants to be „at the forefront of the fusion of finance and technology“.