Ripple and MoneyGram have ended their partnership agreement, according to an announcement made earlier today. However, according to Ripple CEO Brad Garlinghouse, the two parties remain “committed to revisiting our relationship in the future.” The decision to cut ties with each other came on the back of MoneyGram recently suspending its trading activities on Ripple’s On-Demand Liquidity (ODL) platform, a decision MoneyGram made after citing “uncertainty” caused by the SEC’s lawsuit against Ripple Labs.
Today, we’re announcing that Ripple and MGI have together decided to wind down our current partnership agreement, and are both committed to revisiting it in the future. See our full statement: 1/2 https://t.co/KGOzPWuThR
— Brad Garlinghouse (@bgarlinghouse) March 8, 2021
“Ripple and MGI have together decided to wind down the partnership agreement.”
Ripple CEO Brad Garlinghouse tweeted, “today, we’re announcing that Ripple and MGI have together decided to wind down our current partnership agreement and are both committed to revisiting it in the future. As reported earlier, Moneygram had announced to stop using Ripple’s In-Demand Liquidity platform for money transfer. Ripple has been facing legal troubles for a long time, but the latest SEC lawsuit has put the blockchain company in serious trouble. The US SEC has alleged that XRP is unregistered security. Ripple is fighting the US SEC allegations.
MoneyGram is also facing a lawsuit related to its partnership with Ripple.
MoneyGram has also found itself at the receiving end of a lawsuit, one alleging that MoneyGram misrepresented its relationship with Ripple, and by extension, XRP. The lawsuit was filed on behalf of those who purchased MoneyGram shares between 17 June 2019 and 22 February 2021. It alleged that the company repeatedly made false and misleading statements regarding its relationship with Ripple while also failing to disclose that the SEC views XRP as an unregistered security. After first announcing its partnership with Ripple in June 2019, XRP has accounted for between 10-20% of MoneyGram’s ODL transactions across most cross-border payment corridors. Since the lawsuit, several crypto exchanges have delisted XRP from their platforms.