Global money transfer giant, MoneyGram, recently decided to reveal details regarding its partnership with Ripple. With this move, MoneyGram effectively distanced itself from Ripple, following the recent US SEC lawsuit against the Californian crypto startup.
Ripple started losing its supporters due to the SEC lawsuit
Ripple has been working hard to attract banks and payment services all over the world over the past several years. Since the creation of its RippleNet, the firm has been offering it to banks and other financial services, promising near-instant international settlements, perfect for remittance and similar use cases.
However, after the US SEC issued a lawsuit against Ripple, the company’s coin, XRP, saw a massive price crash, in addition to being delisted from a growing number of exchanges.
Now, Ripple started losing supporters, with MoneyGram being one of the first major partners to go.
MoneyGram washes its hands of Ripple
According to MoneyGram’s statement published yesterday, December 23rd, the company revealed that it never actually used Ripple’s RippleNet and its ODL for forex transactions, despite previous reports claiming that it does. It also stressed that it is “not a party to the SEC action.”
“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,” as the press release says.
Ripple’s strategic partnership with MoneyGram started back in June 2019. According to the terms of the partnership, Ripple had to invest $50 million in exchange for the company’s stock. MoneyGram also revealed an additional $11.3 million investment from Ripple earlier this year, in February. Since then, Ripple decided to sell around $15 million of its stake.
The press release’s claims appear to be genuine, and it seems that its independence from Ripple falls in line with some previously reported events. For example, MoneyGram revealed a Visa-based real-time remittance service earlier this year, indicating that it found another way to improve payments channels, without relying on RippleNet.
Similar independence of Ripple’s services was announced by another Ripple partner, Intermex, although this happened earlier this year, in March.
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