MoneyGram distances itself from Ripple, saying it does not use RippleNet

MoneyGram clarifies the nature of its partnership with Ripple.

MoneyGram distances itself from Ripple by saying that it does not use RippleNetNOTÍCIAS

The MoneyGram global money transfer service has clarified the nature of its collaboration with its blockchain partner, Ripple, following the recent investigation of the latter by the US Securities and Exchange Commission.

In a press statement issued on 23 December, MoneyGram revealed that it has never used Ripple’s counterpart services, i.e. On-Demand Liquidity (ODL) and RippleNet, for foreign exchange transactions.

„As a reminder, MoneyGram does not use the ODL or RippleNet platform for direct transfers of consumer funds – digital or otherwise. Moreover, MoneyGram is not a party to the actions of the SEC“.

The company added:

„MoneyGram has continued to use its other traditional FX trading counterparties throughout the term of the contract with Ripple, and does not rely on the Ripple platform to fulfill its FX trading needs.
In June 2019, Ripple and MoneyGram entered into a strategic partnership for international payments. As part of the collaboration, Ripple would invest up to $50 million in exchange for MoneyGram shares.

In February, MoneyGram also unveiled an additional $11.3 million investment by Ripple. However, as reported earlier by the Cointelegraph, Ripple sold about $15 million of its stake in MoneyGram.

MoneyGram’s disclosure that it is not dependent on Ripple’s services is in line with previous events. Earlier this year, the money transfer giant launched a real-time remittance service based on Visa and not its blockchain partner.

Another Ripple employee, Intermex, also revealed in March that it was not using the company’s platform for remittances in its „core market.

MoneyGram’s statement is the latest in a series of actions taken by companies regarding Ripple or XRP. On Wednesday, the Bitwise Asset Management investment fund liquidated its holdings in XRP.

Daily XRP/USD Chart. Source: Tradingview
Several exchanges of cryptomaps have also begun to remove the XRP token. The consequences of the SEC process also put negative pressure on the XRP price action, falling by more than 30% on Wednesday.