In its announcement Ripple noted that it is happy with the progress it had achieved with MoneyGram.
Ripple CEO Brad Garlinghouse availed a public statement confirming the end of the Ripple and MoneyGram partnership. The two struck a partnership deal back in 2019. Ripple was paying MoneyGram to use XRP for international settlement. This was hailed as a game-changer and a clear sign of the capabilities cryptocurrencies offered. After the initial excitement of the partnership, there was little to report in progress. But according to Coindesk, MoneyGram has netted $61.5 million in “market development fees” from Ripple.
This year, things have turned dark for Ripple and MoneyGram seems to be cutting its losses. Following the lawsuit against Ripple by the SEC, MoneyGram first put the partnership on hold. Finally, it has terminated this agreement.
Today, we’re announcing that Ripple and MGI have together decided to wind down our current partnership agreement, and are both committed to revisiting it in the future. See our full statement: 1/2 https://t.co/KGOzPWuThR
— Brad Garlinghouse (@bgarlinghouse) March 8, 2021
The announcement has not made a major impact on XRP prices. At the time of press, the coin is in the green with a 3% move in the last 24 hours. Equally, MoneyGram (NASDAQ: MGI) is also stable at $6.60 though it has seen an after-hours drop to $6.00. Neither looks like they will be impacted in the long term.
XRP continues to struggle to break above $0.50 resistance. With a new wider bull wave underway, the digital asset is likely to break above this and potentially test its current year high of $0.77.
Ripple Assures Strong Growth
The company has noted that it is happy with the progress it has achieved with MoneyGram. It further notes that the partnership has seen billions of dollars sent across the globe through RippleNet and On-Demand Liquidity (ODL). From the official statement, it looks possible that the two might partner once again if Ripple wins the case against the SEC.
This case has not only seen investors flee, but potential investors also stay away and top exchanges delist XRP. Now it has cost the network key strategic partners. It is especially not encouraging for Ripple and other partners watching MoneyGram exit ahead of the court day.
Despite the setbacks, Ripple has assured its clients that it continues to grow. RippleNet general manager, Asheesh Birla has noted on Twitter that RippleNet continues to expand and is onboarding two customers a week. Birla further noted that RippleNet has a strong balance sheet that allows them to expand and pilot new solutions.
Ripple is clearly not going away anytime soon but unfortunately for it and XRP holders, it could get darker before it dawns.
Kiguru is a fine writer with a preference for innovation, finance, and the convergence of the two. A firm adherent to the groundbreaking capability of cryptographic forms of money and the blockchain. When not in his office, he is tuned in to Nas, Eminem, and The Beatles.
