MoneyGram Puts Hold Relationship With Ripple's XRP

[Cordillerabit]

MoneyGram is stepping back from its Ripple Labs partnership, citing the legal uncertainty swirling around the XRP token of the blockchain startup.

The money transfer company said Monday that in the first quarter of 2021, a break from last year's Q1, when MoneyGram paid $12.1 million in such fees, "it is not planning to benefit from Ripple market development fees."

Since 2019, Ripple has paid MoneyGram to use the XRP token (-22.98 percent) in international settlement and first entered into a pilot contract with the service in 2018. MoneyGram has netted $61.5 million from Ripple in "market development fees" since then.

At least until the legal rift between Ripple Labs and the U.S., those payments now appear to be on hold. Commission for Securities and Exchange clears up. In violation of U.S. investment law, SEC prosecutors claim that XRP is an unregistered security, an assertion Ripple Labs has vowed to fight.


Source: Bityard