MoneyGram, the payment giant that caused incredible excitement when it first struck a deal with Ripple (XRP),revealed a detail in its latest paperwork that was quite intriguing and angered XRP investors.
The firm disclosed in its annual report to the U.S. Securities and Exchange Commission that it had made $ 11.3 million in earnings by selling all of the XRP transferred to it through its partnership with Ripple. RippleNet had given the amount of XRP in question as an incentive for the company to use RippleNet in its transactions.
Although MoneyGram's total revenue has been steadily declining, Ripple has been drawing a decidedly positive chart and increasing its revenue. MoneyGram started using On-Demand-Liquidity in the last quarter of last year and is known to be used by other companies in many payment corridors.
MoneyGram's report to the SEC also explicitly states that it used the ODL product and sold the XRP it obtained for revenue. Of the $ 11.3 million XRP, $ 8.9 million was issued in the fourth quarter of 2019 and the rest in the first quarter of 2020.
In fact, this proves that the giant blockchain firm Ripple has done its best to get names in the traditional payment industry to use its own technology. While the backlash over social media was hardly heartwarming, Ripple managed to sign more than 300 partnership agreements through it.