Ripple and MoneyGram have made a joint decision to end their current partnership agreement. This was made official on Ripple CEO, Brad Garlinghouse’s Twitter page.
Ripple and MoneyGram had a partnership that allowed MoneyGram to use XRP tokens in international settlement and get paid for it. Since 2019, MoneyGram has made $61.5 million in “market development fees” from Ripple.
However, the agreement was placed on hold after the U.S Securities and Exchange Commission sued Ripple on claims that XRP is unregistered security in violation of U.S. investments law. The blockchain brand is fighting those assertions.
Yesterday, the 8th of March, both brands decided to “wind down” on their agreement. However, all hope is not lost. They are both committed to revisiting their partnership in the future according to the official blog post.
XRP Will Endure, Says Ripple CEO
Ripple has been on a downward trail since the US SEC brought charges against them for conducting an unregistered security offering. The company’s executives have tried to defend their position multiple times.
On the latest attempt, Garlinghouse called the lawsuit “misguided”. He stated that XRP has been trading in the US for eight years before the SEC brought up these charges.
Furthermore, he laid his case on why XRP is not security. He also promised that the asset will survive even if Ripple ceases to exist.
“If you own a security, it gives you ownership of a company. If Ripple goes away, XRP will continue trading.”
Garlinghouse stated that many other countries (such as Singapore, Switzerland, and Japan) are “making it clear” that XRP is not a security. In contrast, the United States is “the only country on earth that suggests XRP is a security”.
Because of this, the executive has doubled-down the previous account, stating that the lawsuit against XRP is “bad” for the entire cryptocurrency industry, not just for payment processors. This forces entrepreneurs to seek other options as they plan to leave the United States.