MoneyGram is stepping again from its partnership with Ripple Labs, citing the authorized uncertainty swirling across the blockchain startup’s XRP token.
The cash switch firm mentioned Monday it “will not be planning for any profit from Ripple market improvement charges within the first quarter” of 2021, a break from final yr’s Q1 when MoneyGram banked $12.1 million in such charges.
Ripple has been paying MoneyGram to make use of the XRP token in worldwide settlement since 2019 and first partaking in a pilot settlement with the service in 2018. Since then, MoneyGram has netted $61.5 million in “market improvement charges” from Ripple.
These funds now look like on maintain, at the very least till the authorized rift between Ripple Labs and the U.S. Securities and Alternate Fee clears up. SEC prosecutors declare XRP is an unregistered safety in violation of U.S. investments regulation, an assertion Ripple Labs has vowed to battle.