Blockchain payment firm Ripple has announced that it is ending its partnership with money transfer services company MoneyGram International. The companies have not mentioned any reason behind this decision. However, Ripple Chief Executive Officer Brad Garlinghouse has said that it has been decided between both companies that the partnership will be revisited in the future. Garlinghouse said this in a Twitter post. The partnership was initially decided for two years. In 2019, Ripple purchased a USD 30 million stake in MoneyGram. The partnership allowed MoneyGram to use the products of a US-based technology company for foreign exchange settlement and cross-border payment.
“There is a lack of a regulatory framework for cryptocurrencies and has muddied the waters of businesses and consumers in the United States. Nobody can deny what both the companies achieved while working together. A huge sum of money has been sent across borders using on-demand liquidity (ODL) and XRP,” Garlinghouse said in the tweet. Ripple had joined hands with MoneyGram back in June 2019. As part of the partnership, Dallas headquartered in MoneyGram agreed to use the digital asset XRP. Ripple had taken an equity position in the company as part of the deal. While it was said that MoneyGram had received XRP as financial incentives, it was disclosed in a public filing that it did not hold the XRP.
In the light of the ongoing legal fight between Ripple and the United States Securities and Exchange Commission (SEC), MoneyGram had decided to suspend using the platform of Ripple last month. The SEC filed a suit against Ripple, CEO Garlinghouse, and co-founder Chris Larsen in December last year. The SEC has charged the company with conducting unregistered securities offering to the tune of USD 1.3 billion. While Ripple has filed a formal response to the suit, both the CEO and co-founder have moved to have the charges against them dismissed. Cryptocurrencies, except Bitcoin, have yet not been classified as commodities.