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MoneyGram distances itself from Ripple

MoneyGram sheds light on the nature of the Ripple collaboration.

MoneyGram’s global money transfer service explained the essence of its partnership with its blockchain partner Ripple after the latest U.S. probe of the latter. Commission on Securities and Trade.

MoneyGram announced in a press release released on December 23 that it has never used the counterparty facilities of Ripple, namely On-Demand Liquidity (ODL) and RippleNet, for forex transactions. “As a reminder, MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise. Furthermore, MoneyGram is not a party to the SEC action.”

The company added: “MoneyGram has continued to utilize its other traditional FX trading counterparties throughout the term of the agreement with Ripple, and is not dependent on the Ripple platform to accomplish its FX trading needs.”

Ripple and MoneyGram entered into a strategic collaboration for cross-border payments back in June 2019. Ripple was to spend up to $50 million in return for MoneyGram stock as part of the partnership. MoneyGram has announced an additional contribution of $11.3 million from Ripple in February. Ripple, however, has sold about $15 million of its interest in MoneyGram, as previously stated by Cointelegraph.

MoneyGram’s disclosure of not being reliant on Ripple’s resources is in line with previous events. A real-time remittance service focused on Visa and not its blockchain partner was debuted by the money transfer giant earlier in the year. 

In March, another Ripple collaborator, Intermex, also announced that it did not use the company’s remittance network in its “core market.”

MoneyGram’s claim is the latest in a sequence of decisions taken by companies with respect to either Ripple or XRP. Investment firm Bitwise Asset Management liquidated its XRP holdings on Wednesday.The XRP token has already continued to be delisted by many crypto exchanges, with Coinbase currently considering its options. The SEC lawsuit’s fallout has also exerted negative pressure on the XRP market action, shedding on Wednesday over 30 percent.

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