World cash switch service MoneyGram has clarified the character of its collaboration with its blockchain accomplice Ripple following the latter’s latest probe by the U.S. Securities and Alternate Fee.
In a press assertion issued on Dec. 23, MoneyGram revealed that it has by no means utilized Ripple’s counterparty companies, particularly 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 client funds – digital or in any other case. Moreover, MoneyGram just 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 right into a strategic partnership for cross-border funds. As a part of the collaboration, Ripple was to speculate as much as $50 million in trade for MoneyGram inventory.
In February, MoneyGram additionally revealed an extra $11.3 million funding from Ripple. Nonetheless, 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 companies falls according to earlier occasions. Earlier within the yr, the cash switch large debuted a real-time remittance service primarily based on Visa and never its blockchain accomplice.
One other Ripple collaborator Intermex additionally revealed again in March that it wasn’t utilizing the corporate’s platform for remittance in its “core market.”
MoneyGram’s assertion is the most recent in a collection of actions taken by firms with relation to both Ripple or XRP. On Wednesday, funding fund Bitwise Asset Administration liquidated its XRP holdings.
XRP/USD each 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 unfavourable stress on the XRP worth motion, shedding over 30% on Wednesday.