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Ripple terminates cooperation with MoneyGram

Ripple has ended its partnership with money transfer service MoneyGram. This was announced by the CEO of the California-based company Brad Garlinghouse.

According to him, in the future the firms intend to revise the terms of the partnership agreement.

“While the lack of a framework for regulating cryptocurrencies has unnecessarily muddied the waters for businesses and users in the US, there is no denying the joint accomplishments of Ripple and MGI. [MoneyGram]”- said Garlinghouse.

Summer 2019 service started to process cross-border payments through the On-Demand Liquidity (ODL) system using the XRP token. For interaction with ODL MoneyGram received commission in XRP.

In November 2019, Ripple closed $ 50 million deal, having received 9.95% of the partner’s common shares. In the second quarter of 2020, the company paid to the service $ 15 million, in third – $ 9.3 million.

The head of MoneyGram, Alex Holmes, said that in 18 months of cooperation with the fintech company, the number of transactions increased by 220%, and online customers grew by 140%.

December 2020 US Securities and Exchange Commission accused Ripple in the sale of unregistered securities in the form of tokens for $ 1.3 billion. Later, the regulator clarified responsibility Garlinghouse and co-founder Chris Larsen.

Against this backdrop, a number of cryptocurrency platforms and firms have dropped support for the XRP token. Among them – Coinbase и OKCoin, Galaxy Digital, Grayscale Investments and Bitstamp.

At the time of filing the claim MoneyGram occupied wait and see attitude… In February 2021 service refused to use product based on the XRP token, citing the uncertainty surrounding Ripple’s litigation with the US authorities.

As a reminder, the lawyers of Rosen Law Firm filed class action against MoneyGram. In their opinion, the company did not warn about the possible recognition of the XRP token as a security and the potential loss of a source of income in the form of commissions.

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