Citing legal uncertainty regarding the XRP token of blockchain startup Ripple Labs, MoneyGram is not partnering with it
On Monday, the remittance company said that “in the first quarter of 2021, there are no plans to generate any income in the form of commissions for the development of the Ripple market.” It is worth noting that in the first quarter of last year, MoneyGram earned $ 12.1 million on such commissions.
Since 2019, Ripple has been paying MoneyGram to use the XRP token in international settlements, and for the first time a pilot agreement with the service was concluded in 2018. Since then, MoneyGram has received $ 61.5 million from Ripple in market development fees.
These payments are now on hold, at least until a legal conflict between Ripple Labs and the SEC is resolved. Agency prosecutors say XRP is an unregistered security and Ripple Labs violated investment laws. The company has promised to deny all charges.
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