MoneyGram, the global money transfer service, has clarified the nature of its collaboration with its blockchain partner Ripple after it’s (Ripple) recent probe by the US Securities and Exchange Commission (SEC).
It has been reported that MoneyGram revealed that it has never utilized Ripple’s counterparty services, namely On-Demand Liquidity (ODL) and RippleNet, for forex transactions.
“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.”
The company added:
“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.”
However, back in June 2019, Ripple and MoneyGram entered into a strategic partnership for cross-border payments. As part of the collaboration, Ripple was to invest up to $50 million in exchange for MoneyGram stock.
Also, in February, MoneyGram revealed an additional $11.3 million investment from Ripple, as it has sold about $15 million of its stake in MoneyGram.
Thus, MoneyGram’s revelation of not being dependent on Ripple’s services falls in line with previous events, as earlier in the year, the money transfer giant debuted a real-time remittance service based on Visa and not its blockchain partner.