Tuesday, March 2, 2021

MoneyGram distances itself from Ripple, says it doesn’t utilize RippleNet


International cash switch service MoneyGram has clarified the character of its collaboration with its blockchain associate Ripple following the latter’s current probe by the U.S. Securities and Exchange Commission.

In a press statement issued on Dec. 23, MoneyGram revealed that it has by no means utilized Ripple’s counterparty providers, specifically On-Demand Liquidity (ODL) and RippleNet, for foreign exchange transactions.

“As a reminder, MoneyGram doesn’t make the most of the ODL platform or RippleNet for direct transfers of shopper funds – digital or in any other case. Moreover, MoneyGram isn’t a celebration to the SEC motion.”

The corporate added: 

“MoneyGram has continued to make the most of its different conventional FX buying and selling counterparties all through the time period of the settlement with Ripple, and isn’t depending on the Ripple platform to perform its FX buying and selling wants.”

Again in June 2019, Ripple and MoneyGram entered into a strategic partnership for cross-border funds. As a part of the collaboration, Ripple was to speculate as much as $50 million in alternate for MoneyGram inventory.

In February, MoneyGram also revealed an additional $11.3 million investment from Ripple. Nevertheless, as beforehand reported by Cointelegraph, Ripple has offered about $15 million of its stake in MoneyGram.

MoneyGram’s revelation of not being depending on Ripple’s providers falls in step with earlier occasions. Earlier within the 12 months, the cash switch big debuted a real-time remittance service based on Visa and never its blockchain associate.

One other Ripple collaborator Intermex additionally revealed again in March that it wasn’t using the company’s platform for remittance in its “core market.”

MoneyGram’s assertion is the most recent in a sequence of actions taken by firms with relation to both Ripple or XRP. On Wednesday, funding fund Bitwise Asset Management liquidated its XRP holdings.

XRP/USD day by day candle chart (Coinbase). Supply: Tradingview

A number of crypto exchanges have additionally began to delist the XRP token with Coinbase reportedly contemplating its choices. The fallout from the SEC lawsuit has additionally exerted damaging stress on the XRP worth motion, shedding over 30% on Wednesday.