MoneyGram “abandoned” Ripple in the midst of justice
MoneyGram announced it would no longer use Ripple’s XRP-based liquidity product due to the current legal “uncertainty” of the company.
Exchange services firm MoneyGram suspended its partnership with Ripple Labs following the SEC’s lawsuit against the company.
The above lawsuit was filed in December alleging that Ripple’s XRP issuance was an unauthorized stock sale. Since then, major crypto exchanges such as Coinbase and Binance.Us have delisted the coin, and crypto asset management firm Grayscale has also lost faith in XRP. Ripple’s coin was once the 3rd largest cryptocurrency by market cap, but has now significantly reduced in value following the SEC lawsuit.
MoneyGram made the announcement on February 22 in its fourth quarter revenue update. Neither MoneyGram nor Ripple have made any further comments on the event.
Part of the idea behind XRP is that it will help banks move money more efficiently – over time in years, Ripple has partnered with traditional institutions like Bank of Santander and Bank of America.
MoneyGram already uses Ripple as a means of supporting international payments. In November 2019, Ripple completed a $ 50 million investment in this remittance service.
After the SEC announced the allegations against Ripple, MoneyGram initially declared a motionless sentence, delaying answering any questions about the future of the partnership.
At the time, MoneyGram said it would “continue to monitor any potential impact as developments in the suit evolve.” However, the company stressed at the time that it was not using Ripple’s on-demand liquidity product, or RippleNet, “to transfer money to users – digitally or otherwise.”