Ripple and Moneygram (NASDAQ:MGI)are going their separate ways according to SEC filling. The SEC lawsuit has apparently weighed too heavily on the strategic partnership.
Is Ripple a digital security? In the eyes of the US Securities and Exchange Commission, there is no question about that. Therefore, the authority has indicted the Californian FinTech Ripple Labs as well as CEO Brad Garlinghouse and co-founder Chris Larsen for violating the US securities law.
The matter is now in the New York South District Court (SDNY). It is becoming increasingly unlikely that an out-of-court settlement can still be reached. What is already certain: The partnership between Ripple and the international money transfer service provider MoneyGram is history.
Moneygram had distanced itself from its partner shortly after the SEC lawsuit against Ripple became known. On December 23, Moneygram stated that it does not use Ripple’s ODL platform or RippleNet for direct transfer of customer funds. ODL (formerly xRapid) stands for “On-Demand Liquidity” and describes the central use case of XRP as a bridge currency for cross-border transfers. Moneygram put the Ripple partnership on hold in its latest quarterly report .
Now Ripple and Moneygram have apparently officially agreed by mutual agreement to go their separate ways. This has the crypto business on March 8, on his blog reported . One is proud to have “processed billions of US dollars over the RippleNet and ODL”, it says in the brief announcement.
The XRP price hardly seems to be impressed by the not exactly surprising end of the partnership, on the contrary: At the time of going to press, the Ripple asset was trading at $0.48, four percent above the level from the previous day. In the case of MoneyGram stock, however, it looks less rosy. In after-hours trading, MGI stock has slipped below the daily closing price of $6.60 and is trading at 9% lower at the time of writing this article.