Global money transfer service MoneyGram made an important statement. The company clarified the nature of its collaboration with its blockchain partner Ripple following Ripple’s recent probe by the U.S. Securities and Exchange Commission (SEC).
According to the money transfer giant, it has never used Ripple’s counterparty services, namely On-Demand Liquidity (ODL) as well as RippleNet, for forex transactions. People should take into account that MoneyGram is not a party to the SEC action.
Importantly, the company continued to utilize its other traditional FX counterparties throughout the term of the agreement with Ripple. Moreover, MoneyGram is not dependent on the Ripple platform to accomplish its FX trading needs.
As a reminder, last year more precisely in June, MoneyGram and Ripple entered into a strategic partnership for cross-border payments. Importantly, as part of the collaboration, Ripple was to invest up to $50 million in exchange for MoneyGram stock.
MoneyGram and its partner
Interestingly, in February, the global money transfer service also revealed an additional $11.3 million investment from Ripple. Nevertheless, Ripple sold about $15 million of its stake in MoneyGram.
It is worth noting that MoneyGram’s revelation of not being reliant on Ripple’s services falls in line with previous events. Interestingly, earlier in the year, the Dallas-based company debuted a real-time remittance service based on Visa as well as its blockchain partner.
People should take into account that, another Ripple collaborator Intermex also revealed this year that it was not using the company’s platform for remittance in its core market.
Interestingly, the money transfer giant is not the first company to take action regarding Ripple or XRP. This week investment fund Bitwise Asset Management liquidated its XRP holdings.
Moreover, several crypto exchanges also started to delist the XRO token with Coinbase reportedly considering its options.
As a reminder, the U.S. Securities and Exchange Commission took legal action against Ripple and its CEO Brad Garlinghouse as well as co-founder Christian Larsen. According to SEC Ripple and two executives raised more than $1.3 billion through unregistered, ongoing digital asset securities offering to investors since 2013.
Interestingly, Ripple is considering relocating outside the U.S. amid rising frustration at the lack of regulatory clarity. Authorities should work with Ripple and others to solve all problems. This way it will be easier to avoid such cases in the future. Moreover, authorities from countries around the world should work together to tackle such challenges.