While many financial services companies are adopting cryptocurrencies, there has been one notable exception recently. on Monday, MoneyGram International (NASDAQ: MGI) And Ripple Labs – Developers of Cryptocurrency XRP (CRYPTO: XRP) They separately announced that they are in the process of terminating their partnership, in an agreement effective immediately.
This news comes shortly after Ripple plunged into hot legal waters. Last December, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and two of its top executives. According to the regulator, Ripple Labs has raised more than $1.3 billion through offerings of securities for unregistered digital assets conducted since 2013.
When disclosing the termination of the agreement, neither MoneyGram nor Ripple referred to the SEC action. MoneyGram indicated that in December it ceased dealing under the terms of the agreement.
This agreement began in June 2019, after Ripple purchased a stake in the financial services company. Under the terms of the deal, MoneyGram – which is very active in the cross-border remittance market – used Ripple’s ODL blockchain forex trading platform to transact in four currencies. Following the announcement of the SEC’s action, MoneyGram wrote in a press release that it “does not rely on the Ripple platform for its FX trading needs.”
Neither company provided any estimates of how their partnership’s dissolution would affect their fundamentals. Ripple seems to indicate that the door remains open, writing in a post-mortem type: “We are both committed to rethinking our relationship in the future. We continue to 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.”
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