MoneyGram has suspended trading on Ripple’s platform over concerns about the latter’s litigation with the Securities and Exchange Commission (SEC).
Reporting its fourth quarter results, MoneyGram now says: „The Company is not planning for any benefit from Ripple market development fees in the first quarter. Due to the uncertainty concerning their ongoing litigation with the SEC, the Company has suspended trading on Ripple’s platform. In the first quarter of 2020, the Company realized a net expense benefit of $12.1 million from Ripple market development fees.„
In a statement to Finextra, Ripple says it continues to work with Moneygram to explore new use cases beyond ODL.
„We look forward to finding a path forward with MoneyGram and have confidence that there will be more regulatory clarity in the US for the use of digital assets and blockchain technology at the end of this lawsuit.
„As we’ve said before, the lawsuit against Ripple has needlessly muddied the waters and introduced more uncertainty in the market for exchanges, market makers, traders and businesses who want to employ this technology. As a result, some US market participants are reacting conservatively.”
In 2019 Ripple agreed to invest up to $50 million in MoneyGram as part of a two-year partnership that has seen the old-school money transfer player tap the blockchain startup’s XRP digital currency for cross-border payment and foreign exchange settlement.
„Tendinţele pe care le-am remarcat înainte de începerea pandemiei s-au accelerat pe perioada stării de urgenţă. Am văzut acest lucru ca o oportunitate, un tipping point pentru bancă. Post-pandemie nu avem cum sa ne întoarcem la comportamentul financiar pe care îl aveam până în februarie a.c. Relaţia românilor cu online-ul s-a schimbat. In plus, cardul fizic se va dematerializa. Vom asista la o scădere a cererii pentru cardurile fizice, respectiv la o creştere a preferinţei pentru componenta digitală a acestora.”