Bitcoin

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

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

In a press release dated December 23 MoneyGram announced that it has never used Ripple’s counterparty services, specifically On-Demand Liquidity (ODL) and RippleNet, for currency transactions..

“As a reminder, MoneyGram does not use the ODL or RippleNet platform for direct transfers of consumer funds, digital or otherwise. In addition, MoneyGram is not part of the SEC’s action.”

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

The company added:

“MoneyGram has continued to use its other traditional counterparties to trade forex throughout the life of its contract with Ripple and does not rely on Ripple’s platform for its forex trading needs.”

In June 2019, Ripple and MoneyGram formed a strategic partnership for cross-border payments. As part of the collaboration, Ripple had to invest up to $ 50 million in exchange for MoneyGram shares..

In February, MoneyGram also announced an additional $ 11.3 million investment from Ripple. As Cointelegraph previously reported, Ripple has sold around $ 15 million of its stake in MoneyGram.

MoneyGram’s disclosure of not relying on Ripple’s services coincides with the events noted above. Earlier this year, the money transfer giant unveiled a real-time remittance service based on Visa rather than its blockchain partner.

Another Ripple Contributor, Intermex also announced in March that it was not using the company’s platform for wire transfers in its “core market”..

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

XRP / USD (Coinbase) daily candlestick chart. Source: trade view

Several cryptocurrency exchanges have also started delisting XRP tokens with Coinbase.According to reports, considering your options. The impact of the SEC lawsuit has also put XRP price action under negative pressure, falling more than 30% on Wednesday..

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