Ripple terminates its multi-year partnership with MoneyGram

TL;DR Breakdown

• Ripple has terminated its partnership with MoneyGram.
• Earlier this month, MoneyGram was sued for allegedly presenting false statements regarding its partnership with the blockchain company.

The blockchain company behind XRP cryptocurrency, Ripple, has officially disclosed the termination of its multi-year partnership agreement with one of the big-name payment companies, MoneyGram. The development is coming some days after MoneyGram was sued for allegedly presenting misleading statements concerning its collaboration with the blockchain payment company.

MoneyGram may no longer be using XRP payment services going forward. Meanwhile, the XRP cryptocurrency trades at $0.4793 (a 2.21 percent increase on a 24-hour count), according to Coinmarketcap.

Ripple, MoneyGram officially terminates their partnership

MoneyGram entered the multi-year partnership with the blockchain company in June 2019, which saw the company receiving an incentive from the XRP blockchain company for using its services, although MoneyGram stated last year that it “does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise.” However, following the announcement on Monday, the partnership between both companies has been terminated.

Both companies were still able to achieve a lot within these periods of partnership, per the announcement.

“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),” the announcement reads.

What’s behind the contract termination?

The main reason behind the development today remains unknown. However, it’s worth noting that MoneyGram had suspended trading on Ripple’s platform last month, following the charges announced by the US Securities and Exchange Commission (SEC). Earlier this month, a class-action lawsuit was filed against MoneyGram for allegedly presenting misleading statements regarding its partnership with Ripple.