Ripple has finally parted ways with MoneyGram. This was made known via an announcement in which the firm said:
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).
Moneygram First Ditched Ripple
MoneyGram drew the first blood by halting its works on Ripple’s platform due to the lawsuit filed against the company by the U.S. Securities and Exchange Commission (SEC). In 2019, MoneyGram and Ripple entered into a partnership which drove their market shares through the roof. This partnership saw the crypto company pay $50 million to MoneyGram for using its platform.
According to details of the agreement, Ripple would provide a platform for MoneyGram’s cross-border payments process. And while the partnership lasted, the San Francisco-based company paid several millions of dollars to MoneyGram as “market development fees.”
Following the official dissolution of the partnership, the shares of the remittance giant dipped by 9%. Just this month, MoneyGram was slammed with a class-action suit. They were alleged to have issued misleading statements on their partnership with the crypto company.
Brad Garlinghouse Lauds Their Achievements
Ripple’s CEO, Brad Garlinghouse took to Twitter to laud what they had been able to achieve with MoneyGram. According to him, the firms were able to achieve quite a lot despite the several regulatory challenges they faced.
Today, we’re announcing that Ripple and MGI have together decided to wind down our current partnership agreement, and are both committed to revisiting it in the future. See our full statement: 1/2 https://t.co/KGOzPWuThR
— Brad Garlinghouse (@bgarlinghouse) March 8, 2021
Regulatory Clarity on ODL Waits
Aseesh Birla, General Manager for RippleNet is optimistic that the regulatory authorities would provide clarity on On-Demand Liquidity (ODL) that is powered by the native token of the crypto company, XRP. Highlighting the fact that since the cross-border solution solves a real problem, the authorities would have to provide some level of clarity concerning its future usage.
However, they might have to wait for this to happen since the partnership with MoneyGram no longer exists and the existing lawsuit with SEC is just beginning.