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

Published at: Dec. 24, 2020

Global money transfer service MoneyGram has clarified the nature of its collaboration with its blockchain partner Ripple following the latter’s recent probe by the U.S. Securities and Exchange Commission.

In a press statement issued on Dec. 23, MoneyGram revealed that it has never utilized Ripple’s counterparty services, 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."

Back in June 2019, Ripple and MoneyGram entered into a strategic partnership for cross-border payments. As part of the collaboration, Ripple was to invest up to $50 million in exchange for MoneyGram stock.

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

MoneyGram’s revelation of not being dependent on Ripple’s services falls in line with previous events. Earlier in the year, the money transfer giant debuted a real-time remittance service based on Visa and not its blockchain partner.

Another Ripple collaborator Intermex also revealed back in March that it wasn’t using the company’s platform for remittance in its “core market.”

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

Several crypto exchanges have also started to delist the XRP token with Coinbase reportedly considering its options. The fallout from the SEC lawsuit has also exerted negative pressure on the XRP price action, shedding over 30% on Wednesday.

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