The CEO of Ripple, Brad Garlinghouse released a statement announcing that the financial technology company and MoneyGram International have jointly decided to “end” their partnership..
However, the March 8 declaration indicates this Both companies agree to re-study a form of association in the future.
Garlinghouse stated that together, Ripple and MoneyGram International (MGI) processed billions of dollars through Ripple’s RippleNet and On-Demand Liquidity Services (ODL), stating:
“While the lack of a cryptoregulatory framework has made the water unnecessarily murky for American businesses and consumers, there’s no denying what Ripple and MGI have achieved together.”
Ripple’s CEO has repeatedly accused U.S. lawmakers of suffocating the cryptocurrency sector by failing to set clear regulatory guidelines.. In statements to the financial media Axios from March 8th stated that the U.S. government’s claim that Ripple’s XRP token is a security is having a negative impact on the cryptocurrency industry in general, stating:
So I’m saying this is not only bad for Ripple, but bad for cryptocurrencies in general here in the United States. And it drives this activity, it drives this business outside of the United States. “????
The strategic partnership between the two companies was officially announced in June 2019However, MoneyGram has been using Ripple’s xRapid product as part of its cross-border payment process since early 2018. The agreement between the two companies should expire in 2023.
Yet, MGI suspended its partnership with Ripple in late February after the US Securities and Exchange Commission filed a complaint against Ripple Labs for violations of the securities in December 2020.. In the same month, the payment company stated that it is not using the ODL platform or RippleNet for direct money transfers from consumers and is not involved in the SEC action.
In early March, MoneyGram was sued in a California court over alleged false statements about its association with Ripple Labs and the cryptocurrency XRP.. The class action lawsuit was filed by the law firm Rosen on behalf of investors who purchased MoneyGram securities between June 17, 2019 and February 22, 2021.
At the end of this issue, MGI stocks fell 9% while XRP rose 2% on the day to $ 0.48.