MoneyGram May Part Ways with Ripple
Just a week back, it was announced by the Securities and Exchanges Commission of the United States that it is planning to file a lawsuit against Ripple (XRP). It alleged the Ripple network for soliciting its securities to the American consumers through its XRP tokens. The Securities and Exchanges Commission claimed that the Ripple network did this without even getting its securities registered by it.
After SEC’s announcement and the allegations portrayed by it against the Ripple network, Ripple has been under a lot of pressure. Following the allegations made by the SEC, many small-time cryptocurrency exchanges de-listed XRP from their platforms.
Although the CEO of Ripple (XRP) denied all the allegations, yet things are not looking good for the network and for its partners.
Just recently, it was MoneyGram that was seen clearing its position and collaboration with the Ripple network. MoneyGram is one of the most popular services in the world used for transferring money and has been partners with Ripple for a long time.
Following Ripple’s recent feud with the SEC, MoneyGram has released a press statement on December 23, 2020. In the press release, MoneyGram has attempted to clear its position and clarify the scope of its partnership with Ripple.
In the press release, MoneyGram clearly stated that it has never been a part of Ripple’s counterparty services for processing Forex transactions. The counterparty services that MoneyGram referred to were RippleNet and On-Demand Liquidity (ODL). In addition to collaborating with Ripple, MoneyGram also made it clear that it has nothing to do with the SEC action.
The partnership between MoneyGram and Ripple has been in place for more than a year. Both parties joined hands and signed up an agreement back in June 2019. The agreement between the two parties was to facilitate each other in processing cross-border transactions.
One of the most prominent conditions of the agreement was that Ripple was required to make an investment of a large amount into the exchange for the MoneyGram stocks.
It was later confirmed that Ripple was required to make an investment of up to $50 million to acquire MoneyGram stock. After the initial investment, another investment was made by Ripple for $11.3 million in February of 2020. This information was also confirmed by MoneyGram.
It was recently revealed by one of the crypto-reporting firms that Ripple has sold around $15 million worth of its stakes over to MoneyGram. At the beginning of the year 2020, it was reported that MoneyGram had introduced its remittance service that was based on the Visa platform.
Although it was a joyful announcement for the users of MoneyGram and Visa, yet rumors started popping up surrounding MoneyGram’s relation with Ripple.
Another firm known as Intermex had recently revealed that it was also not using Ripple’s counterparty services for its remittance programs.