Cryptocurrencies

MoneyGram distances itself from Ripple – Cryptocurrencies

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With the imminent trial awaiting him following the SEC decision, the lights are no longer necessarily green on the side of Ripple. Besides the value of XRP which has taken a hit in the market, it is now around the company’s partners to reconsider their position. While MoneyGram bought back 15% of Ripple’s stake in its company, it has just clarified the nature of the relations that binds the two structures. A tune up that she considers necessary so as not to pay the price for her partner’s current problems.

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MoneyGram claims not to use ODL or RippleNet platform

It is through an official press release with explicit content that MoneyGram wanted to clarify the status of its collaboration with Ripple. ” As a reminder, MoneyGram does not use the ODL or RippleNet platform for direct consumer money transfers – digital or otherwise. Additionally, MoneyGram is not a party to the SEC action. We continued to use other traditional counterparties for foreign exchange transactions throughout the life of the Ripple agreement, and do not rely on the Ripple platform to meet our foreign exchange needs Clarified the document which was published on December 23.

The global money transfer service therefore wanted to make this clarification. to avoid falling into the nets of regulators given the relationship between the two companies. In June 2019, they notably concluded a strategic partnership for the execution of cross-border payments. It was thus expected that MoneyGram sells shares to its partner against an investment of $ 50 million. Eight months later, this amount had been increased by $ 11.3 million according to an announcement made by the beneficiary. Most recently Ripple retroceded 15% of its stake in MoneyGram for $ 15 million.

Similar reactions from other Ripple partners

There is nothing personal about MoneyGram’s approach to its partner, but it is part of a logic followed by several employees of the latter. Intermex had also clarified that it did not use the platform provided by Ripple for its activities. As another measure related to this case, several exchanges that provided support to the company have removed the XRP asset from their platform.

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The investment fund Bitwise Asset Management did not hesitate to liquidate its XRP holdings.. All these exits have of course had a negative impact on the assets which already have lost more than 30% of its value even though the trial has not yet started.

While it is true that the value of friends is appreciated in their support during difficult times, this does not necessarily hold true in business. This ordeal will have the merit of reminding Ripple that only interests count in this environment and that she would do better to work on defending her own people well during the coming trial.

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