MoneyGram Releases Statement Clarifying Ripple Relationship

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In Brief
  • MoneyGram has released a press statement clarifying its partnership with Ripple.

  • The firm signed an agreement with Ripple last year to utilize some of its platforms.

  • The SEC has filed charges against Ripple for the sale of $1.3 billion in unregistered securities.

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The Trust Project is an international consortium of news organizations building standards of transparency.

MoneyGram, a major international remittance money transfer service, has made an official statement regarding the recent SEC suit filed against Ripple.

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MoneyGram has a commercial agreement with Ripple dating back to June of last year. Although it makes no mention of ending the partnership, it felt the need to clarify what the partnership entails and how it utilizes products created by Ripple Labs.

In the official press release, MoneyGram states that it does not use the ODL (on-demand liquidity) platform or RippleNet for any direct transfers of its customer’s funds.

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It continues:

“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.”

MoneyGram also clarifies that it isn’t involved in the lawsuit between Ripple and the SEC in any way. The money transfer service finalizes the press briefing with potential risks and uncertainties that could affect its business.

The SEC Files Charges Against Ripple                   

On Wednesday, after several days of rumors, the SEC officially charged Ripple Labs and two of its executives. This includes co-founder Christian Larsen and CEO Brad Garlinghouse, who reportedly sold unregistered securities to the tune of $1.3 billion.

Although the SEC previously stated that it views Bitcoin and Ethereum as currencies and not securities, the SEC does not view Ripple in the same way. Ripple executives believe otherwise.

Of the many factors that led to this decision, a primary reason included Ripple Labs generating a significant amount of revenue through the sale of XRP. Ripple Labs also controls a majority stake in circulating XRP, owning 55%.

MoneyGram Not Tied to XRP Token

Ripple and XRP are by no means the first cryptocurrency projects the SEC has pursued for the sale of unregistered securities. It is, by far, the largest, though.

XRP remains the fourth-largest cryptocurrency by market capitalization, clocking in at over $12 billion. The asset has fallen by over 50% since the suit was announced.

Elevated regulatory scrutiny around cryptocurrencies could continue to have substantial affects on the ecosystem and its related companies as a whole.

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Harrison is an analyst, reporter, and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.

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