International cash switch service MoneyGram says it has formally suspended its partnership with blockchain funds agency Ripple amid the latter’s litigation with the SEC.
In keeping with MoneyGram’s quarterly outlook, the corporate is “not planning for any profit from Ripple market improvement charges” for Q1 2021. MoneyGram stated it had a greater than $12 million web expense profit from Ripple in the identical quarter final yr.
“Because of the uncertainty regarding their ongoing litigation with the SEC, the Firm has suspended buying and selling on Ripple’s platform,” stated MoneyGram.
The collaboration between the 2 corporations largely started three years in the past, when MoneyGram built-in XRP into its fee system. The next yr, Ripple and MoneyGram entered right into a partnership for cross-border funds and international trade settlements with digital belongings.
Ripple adopted by with a $50 million funding in November 2019 in trade for a ten% stake within the firm. As of December, the agency has bought roughly $15 million of the MoneyGram inventory.
Nevertheless, amid the information in December that the U.S. Securities and Alternate Fee could be taking authorized motion towards Ripple in addition to its CEO Brad Garlinghouse, and co-founder Christian Larsen, MoneyGram has seemingly tried to distance itself from the agency. A number of days after the SEC announcement, MoneyGram stated it had by no means utilized Ripple’s On-Demand Liquidity and RippleNet companies “for direct transfers of client funds.”
MoneyGram is just not the one agency to react to the SEC’s lawsuit towards Ripple. Many crypto exchanges have already delisted or suspended buying and selling for the XRP token. Though the fallout from the lawsuit initially triggered the XRP value to drop, the token has largely recovered in two months, and is presently $0.5975 on the time of publication.