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Wire transfer service MoneyGram suspends partnership with Ripple

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There is uncertainty due to the ongoing litigation between Ripple and the US SEC.

Rhythm BlockBeats news, on February 23, after the US Securities and Exchange Commission (SEC) sued encrypted payment company Ripple Labs (Ripple Labs), the wire transfer service company MoneyGram (MoneyGram) suspended its communication with Ripple. partnership.

The lawsuit, filed last December, accuses Ripple Labs of selling the cryptocurrency Ripple starting in 2013 (XRP) is an unregistered securities offering.

Major cryptocurrency trading platforms such as Coinbase and Binance US have delisted XRP, and encrypted asset management companies grayed out Greyscale also announced the dissolution of its XRP-focused trust company. Ripple, once the third-largest cryptocurrency by market capitalization, has fallen sharply in the wake of the lawsuit.

MoneyGram made the announcement during its fourth quarter earnings report on February 22. "Due to the uncertainty surrounding their ongoing litigation with the SEC, we have suspended trading on the Ripple platform," MoneyGram wrote. The company added that it “does not intend to receive any proceeds from Ripple’s market development expenses in the first quarter,” meaning it does not expect to receive any revenue from Ripple transactions in the current quarter.

Ripple revealed that it signed a multi-year contract with MoneyGram in 2019, which "still In execution, and not limited to the use of ODL (On-Demand Liquidity)". A Ripple spokesperson added: “Together, we are actively leveraging and exploring other use cases. We look forward to finding a way for MoneyGram and believe there will be greater use of digital assets and blockchain technology in the U.S. following the conclusion of this lawsuit.” Great regulatory transparency.”

MoneyGram has previously used Ripple as one of the means to facilitate international payments.