Ripple has announced that both Ripple and MoneyGram have mutually decided to end the partnership agreement reached back in 2019, just months after MoneyGram distanced itself from Ripple amid a US Security and Exchanges Commission probe on the company.
In its statement, Ripple stated that the company was satisfied with the results and impact of the partnership during the last years as billions of dollars were processed using its RippleNet and On-Demand Liquidity services.
The statement finished by opening the doors to both companies working together in the future to, “change the status quo in global payments”.
Ripple is Being Held Back by US Regulators
Brad Garlinghouse, Ripple CEO, referred to the decision by tweeting that a lack of a regulatory framework for crypto played a role in the break by muddying the waters both for business and consumers.
Garlinghouse has been vocal in his opposition to the SEC stance on Ripple and the ongoing actions against the company, which has caused its future to be all but certain as to how it will operate in the future.
While MoneyGram had already announced that it would no longer be using Ripple’s crypto-based liquidity solution back on February 22 when it published its fourth-quarter report for 2020.
Companies Continue to Distance Themselves from Ripple
In the report, MoneyGram stated it was not planning to use Ripple’s services in the first quarter of 2021 “due to the uncertainty concerning their ongoing litigation with the SEC.”
This decision was reached despite the company reporting a net expense benefit of $12.1 million from using Ripple during the first quarter of 2020.
Other companies like Binance and Coinbase delisted XRP from their exchanges earlier this year for users in the United States, with both companies having concerns about the legal status of the cryptocurrency in the US as the SEC case progresses.
Ripple collaborators like Intermex also announced they would not be using the platform’s services for the…