Ripple Calls-off its Partnership With MoneyGram

Ripple, the blockchain payment behind the XRP cryptocurrency, is officially terminating its multi-year partnership with MoneyGram, a global leader in cross-border P2P payments and money transfers. Ripple noted in the announcement on Tuesday, and the primary reason behind the decision remains unknown.

Ripple, MoneyGram Agrees to end Their Partnership

As the announcement reads, both companies took the decision to terminate their current partnership agreements, which were established back in June 2019. At the time, the blockchain payment company reportedly acquired a US$30 million stake in MoneyGram. Under the partnership, MoneyGram was incentivized to use Ripple’s product for cross-border payment and foreign exchange settlement.

However, MoneyGram did mention last year that it doesn’t use the “ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise.” Although Ripple didn’t specify the reason the partnership is being terminated, it’s worth noting that MoneyGram recently stopped trading on Ripple’s platform amid the U.S. Securities and Exchange Commission charges against Ripple.

Also, Crypto News Australia reported that MoneyGram was hit with a class-action lawsuit for making a false statement regarding its partnership with Ripple.

Ripple Might Revisit its Terms with MoneyGram

The blockchain company also mentioned in the announcement that it might revisit its partnership with MoneyGram in the future. Within a few months of the partnership, both companies achieved and processed lots of transactions, as Ripple admitted:

“We are proud of the work we were able to accomplish in a short amount of time, as well as the impact we were able to achieve in bringing this first-of-its-kind product to market. Together, we processed billions of dollars through RippleNet and On-Demand Liquidity (ODL).”