Yesterday as part of its financial results, money transfer company MoneyGram said it was suspending use of Ripple‘s platform. In December, after the U.S. SEC’s lawsuit against Ripple that alleged XRP is a security, MoneyGram said it would take a wait-and-see approach but continue to use the platform. So it seems to have changed its tune in the interim.
Back in 2019, MoneyGram and Ripple entered into a strategic partnership in which Ripple would make $50 million of funds available for MoneyGram to use (presumably XRP) in exchange for an equity interest in the listed company. Moneygram used Ripple’s On Demand Liquidity (ODL) solution for four currencies.
When an institution initiates a payment, the original currency is first converted into XRP by a digital asset exchange in the original country, say dollars to XRP. Almost immediately, the XRP is converted into the destination currency, for example, XRP to Canadian dollars.
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