Blockchain company, Ripple Labs has announced the official termination of its partnership with MoneyGram International.
Ripple entered into a partnership with MoneyGram after it bought a $30 million stake in the money transfer company back in 2019. According to reports, the partnership was to allow Ripple to use its RippleNet and On-Demand Liquidity (ODL) for cross-border payments and foreign settlements.
As part of the partnership, MoneyGram would receive incentives in the form of XRP. Notably, as evident in its public filings, MoneyGram did not hold the XRP but sold it as soon as they received the cryptocurrency. The partnership allowed thousands of users to transact and send money to their families abroad. Ripple Chief Executive Officer Brad Garlinghouse explained that:
“We still believe in the promise of digital assets and blockchain technology to change the status quo in global payments for the benefit of billions of consumers around the world. Together, we processed billions of dollars through RippleNet and On-Demand Liquidity (ODL).”
While the company did not specify the reasons for the termination, Garlinghouse explained in a tweet that both companies were open to revisiting the partnership in the future. Garlinghouse added:
“We still believe in the promise of digital assets and blockchain technology to change the status quo in global payments for the benefit of billions of consumers around the world.”
Last year, Ripple and its founders were charged by the U.S. Securities and Exchange Commission (SEC) for running a $1.3 billion unregistered securities offering. The complaint read in part, “Ripple …
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