Ripple ends partnership with MoneyGram

Blockchain payment firm Ripple and money transfer services company MoneyGram has revealed an end to their partnership.

Both companies did not specify the reason behind the decision to terminate the agreement.

However, Ripple Chief Executive Officer Brad Garlinghouse said in a Twitter post that the companies were committed to revisiting the partnership in future.

Ripple bought a $30 million stake in MoneyGram in 2019, with the partnership initially set for two years.

The deal allowed MoneyGram to use Ripple’s product for cross-border payment and foreign exchange settlement.

In December, the U.S. Securities and Exchange Commission charged Ripple, associated with cryptocurrency XRP, with conducting a $1.3 billion unregistered securities offering.

While bitcoin is considered a commodity by U.S. financial regulators, most other cryptocurrencies are yet to be classified as commodities or securities.

MoneyGram, which stopped transacting under its commercial agreement with Ripple in early December, said in a regulatory filing it will not receive any market development fees in 2021.