Global money transfer service MoneyGram reveals that it’s modified its relationship with blockchain payments firm Ripple [XRP] amid the latter’s litigation with the SEC [Securities and Exchange Commission].
In line with MoneyGram’s quarterly outlook, the firm is “not planning for any enjoy Ripple market development fees” for the primary quarter of this year. MoneyGram revealed that it had an over $12 Mln net expense benefit Ripple [XRP] within the same quarter last year.
“Due to the uncertainty concerning their ongoing lawsuit with the SEC, the firm has suspended trading on Ripple’s platform,” added MoneyGram.
The partnership between the 2 firms largely began three years ago, when MoneyGram integrated Ripple into its payment system. The subsequent year, Ripple and MoneyGram entered into a collaboration for cross-border payments and exchange settlements with virtual assets.
Ripple followed via with a $50 Mln investment earlier in November 2019 in cryptocurrency exchange for a 10x stake within the company. As of December 2020, the firm has sold roughly $15 Mln of the MoneyGram stock.
Moreover, amid the news earlier in December 2020 that the United States SEC would be taking action against XRP as its CEO, Brad Garlinghouse, and co-founder Christian Larsen, MoneyGram has seemingly attempted to distance itself from the firm. A couple of days after the SEC outlook, MoneyGram added that it had never utilized Ripple’s On-Demand Liquidity and RippleNet services “for direct transfers of user funds.”
[MoneyGram] isn’t the sole firm to react to the SEC’s lawsuit against Ripple. Several crypto exchanges have already delisted or suspended the trading of the Ripple token. Although the fallout from the lawsuit primarily caused XRP’s price to drop, the token has largely recovered in 2 months and is presently at $0.459 USD at the reporting time.