Global money transfer service MoneyGram says it has officially suspended its partnership with blockchain payments firm Ripple amid the latter’s litigation with the SEC.
According to MoneyGram’s quarterly outlook, the company is “not planning for any benefit from Ripple market development fees” for Q1 2021. MoneyGram said it had a more than $12 million net expense benefit from Ripple in the same quarter last year.
“Due to the uncertainty concerning their ongoing litigation with the SEC, the Company has suspended trading on Ripple’s platform,” said MoneyGram.
The collaboration between the two firms largely began three years ago, when MoneyGram integrated XRP into its payment system. The following year, Ripple and MoneyGram entered into a partnership for cross-border payments and foreign exchange settlements with digital assets.
Ripple followed through with a $50 million investment in November 2019 in exchange for a 10% stake in the company. As of December, the firm has sold roughly $15 million of the MoneyGram stock.