MoneyGram won’t use Ripple’s XRP until the SEC goes away
MoneyGram insists it’s still behind Ripple Labs despite putting its long-term partnership with the troubled crypto firm on hold.
- Ripple paid MoneyGram $50 million to use its xRapid network in 2019.
- Ripple’s xRapid (since rebranded to “On-Demand Liquidity”) utilizes its XRP token, which the SEC says is a security.
- MoneyGram earned an additional $50 million in “market development fees” from Ripple last year.
But the money transfer giant has now suspended XRP payments until Ripple resolves its legal issues with the SEC.
In its latest earnings call, MoneyGram more-or-less noted its willing to take the financial hit to avoid US government regulators.
Ripple issued a response which claims the partnership is still alive (technically), and it’s exploring other use-cases that don’t involve XRP.
[Read more: Grayscale just sold $9M in XRP — cos the SEC]
Despite its commitment to the longstanding partnership, Ripple offloaded 33% of its MoneyGram shares last year to “realize some gains on its investment,” reported The Block.