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MoneyGram pauses Ripple Partnership amidst SEC Lawsuit

MoneyGram pauses Ripple Partnership amidst SEC Lawsuit

The significant publicly-traded remittance firm MoneyGram announced that it suspended its use of Ripple’s payments solutions due to Ripple’s legal fight with the U.S. SEC. Ripple’s collaboration with MoneyGram started in June 2019 and was supposed to stretch till July 2023. Ripple had earlier paid MoneyGram to employ XRP for international and cross-border payments. This has been continuing after the established pilot agreement started among the two companies in 2018.

After the agreement, MoneyGram has made $61.5 million in market development fees thanks to Ripple. Nevertheless, the money transfer giant stated on Monday that it does not intend to profit from Ripple market development fees in the Q1 of 2021. It is a massive difference from when MoneyGram formed $12.1 million in market development fees in last year’s Q1. In 2018, MoneyGram reckoned among one of the largest firms to publicly declare that it led Ripple’s XRP cryptocurrency in its remittance services. 

Various crypto exchanges delists XRP

Nonetheless, MoneyGram has temporarily suspended the usage of XRP given the ongoing legal battle between Ripple Labs and the U.S. SEC. The SEC claims that XRP is unregistered security, and the complaint, consequently, places Ripple Labs and its lead executives in breach of federal securities laws. Following the SEC’s lawsuit on Ripple, various cryptocurrency exchanges have also resulted in delisting or freezing XRP trading on their platforms to circumvent legal complications.

Furthermore, those exchanges who haven’t suspended have cautioned that they may eventually follow suit, as liquidity on associate exchanges for XRP drops. Moreover, there may be a limit for platforms trading XRP. The movement from various crypto platforms to delist XRP has not depressed the firm. Recently, XRP broke the $0.50 level once again, despite falling drastically following the SEC declared it was suing Ripple. It has grown from lows of $0.30 and is now trading at around $0.5370 on CoinMarketCap at the time of writing.

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