Payments giant MoneyGram has suspended its use of XRP payments as Ripple deals with an ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
MoneyGram chief executive Alex Holmes announced the move during a new conference call on the company’s fourth quarter and full-year 2020 financial results.
The SEC filed a lawsuit in late December asserting XRP is a security and alleging Ripple illegally sold large amounts of the crypto asset.
Holmes says MoneyGram is monitoring the SEC case and suspended its use of Ripple’s XRP-powered cross-border payments product, On-Demand Liquidity, out of “an abundance of caution.”
“I don’t think that we are saying that it’s a permanent decision. I think that will take some time to sort through and it’s just one of those interesting situations I think, which have presented itself and made it very difficult to continue on at this point in time.”
Prior to the lawsuit, MoneyGram had been using the crypto-based