The United States-based global cross-border Peer-to-Peer (P2P) payments and money transfer service, MoneyGram International has shed a light on its partnership with the San Francisco-based blockchain payments firm Ripple in the light of the recent legal action taken by the United States Securities and Exchange Commission (SEC) against the parent company of XRP.
MoneyGram has issued a statement on the 23rd of December in a press release revealing that it has distanced itself from Ripple. MoneyGram has claimed that it did not make use of the counterparty services of Ripple. It said that it has not used Ripple’s global payments network RippleNet neither it sought the help of the On-Demand Liquidity (ODL) of the company for conducting cross-border payments. However, it said that it has leveraged the services of some other FX trading counterparties for this purpose.
As the financial services firm said in its press release:
“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 a reminder, MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise. Furthermore, MoneyGram is not a party to the SEC action.”
MoneyGram and Ripple became partners back in the month of June in 2019 in order to accomplish the needs of cross-border payments. This strategic partnership between these two grew further with the passage of time. Ripple made an investment of $11.3 million in MoneyGram back in the month of February this year. Recently, the company also completed the sale of $15 million worth of MoneyGram stake as well.
But now MoneyGram is distancing itself from the company. The reason is the lawsuit filing against Ripple by the Securities and Exchange Commission.
Apart from MoneyGram, various cryptocurrency firms and exchanges have dumped XRP the native digital currency of Ripple. Mike Novogratz’ Galaxy Digital and Jump Trading have announced to stop making markets in XRP. Bitwise Asset Management has ditched XRP as well and has liquidated its position in XRP.
Some crypto exchanges OSL, Beaxy, and CrossTower have also halted trading for XRP. All of these digital currency exchanges no longer support XRP on their trading platforms.