According to reports, MoneyGram said in its quarterly earnings report released on the day that it has stopped remittance transactions using Ripple’s platform due to uncertain regulatory prospects.
Moneygram’s regulatory prospects for Ripple were questioned by the Securities and Exchange Commission (SEC), which filed a lawsuit against Ripple at the end of last year in response to responsibilities for trading in unregistered securities. It is according to one.
At the time of 2019, Ripple invested 50 million dollars in Moneygram and acquired about 10% of the stake. Since then, it is known that Ripple has paid more than 10 million dollars in Moneygram in the name of’market development cost’ to supply liquidity.
When the SEC filed a lawsuit, the company said it would watch the situation for the time being, but the partnership between the two sides was suspended indefinitely according to the announcement on the day.
Meanwhile, Ripple’s cryptocurrency XRP continued to rise during the intraday, with most major stocks such as bitcoin falling sharply.
The market believes that the short-term rise in XRP prices was due to the influence of Ripple and the preliminary hearing held on the day before the start of an official trial with the SEC.
It is known that the SEC and XRP have expressed their intention to go to a formal trial without agreement through a written submission submitted in advance, but investors are said to expect the possibility of some change in the current situation according to the court’s recommendation on the day.
Based on coin market cap data, XRP rose 11% to $0.60 as of 3pm New York time.