Questions Arise from Ripple’s MoneyGram Partnership

According to an SEC filing MoneyGram revealed that Ripple had paid the remittances company more than $11mn in the last two quarters; the company originally booked the capital as revenue until the SEC intervened and it was then changed to “contra expenses” according to the FT; the episode brought more questions as to how the blockchain startup is doing and what is the status of their cross border payments technology; CEO Brad Garlinghouse says the company has hundreds of bank clients using their technology but as the FT reports this claim comes with very little detail; the company does a have high profile relationship with Santander and there is also the deal with MoneyGram, which as of late last year said 10 percent of the US-Mexico business was done using Ripple’s technology; the company has made a name for themselves on creating more efficient payments but there are questions around how successful they have been. Financial Times

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