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 stated Monday it “shouldn’t be planning for any profit from Ripple market growth charges within the first quarter” of 2021, a break from final 12 months’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 participating in a pilot settlement with the service in 2018. Since then, MoneyGram has netted $61.5 million in “market growth charges” from Ripple.
These funds now seem like on maintain, a minimum of 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 legislation, an assertion Ripple Labs has vowed to struggle.