Ripple announced that it has cut ties with money transfer service provider MoneyGram
Yesterday, Ripple Labs confirmed that the partnership with MoneyGram has ended. The blockchain company behind the XRP token released a statement that the two had mutually agreed to end the collaboration.
“Together, Ripple and MoneyGram made the decision to end our current partnership agreement.” read the statement.
The partnership, founded in June 2019, was initially “shaky” when MoneyGram distanced itself in the face of the lawsuit filed by the US Securities and Exchange Commission against Ripple. The commission alleged that XRP was an unregistered security and that Ripple had violated investment law.
Before MoneyGram stepped back from the alliance last month and stopped using XRP on its platform, it had worked with Ripple for almost two years. The two have teamed up on a cross-border payments project in which MoneyGram has agreed to use the XRP token for international payment processing.
Ripple provided financial support in its original token and consequently took a stock position in MoneyGram. However, according to the public records, MoneyGram did not have the tokens provided. instead, she sold it. The money transfer company is reported to have earned around $ 61.5 million in total in market development fees from the blockchain firm over the duration of the collaboration.
“We are proud of the work we have been able to do in a short period of time and the impact we have had in bringing this unique product to market. Together we’ve processed billions of dollars through RippleNet and On-Demand Liquidity (ODL). “
Ripple noted that despite the termination of the partnership, there was still room for collaboration in the future.
“We are both determined to reconsider our relationship in the future. We still believe in the promise of digital assets and blockchain technology to change the status quo in global payments for the benefit of billions of consumers around the world. “
Brad Garlinghouse, CEO of Ripple, shared the success of the partnership on Twitter, saying: “While the lack of a Crypto-Reg framework has unnecessarily tarnished the waters for US businesses and consumers, there is no denying what Ripple and MGI have achieved together. Billions of dollars have been sent and processed across borders via ODL with XRP. “
Ripple has fervently denied the SEC’s allegations, and its executives have dismissed the charges they are facing.