Please ensure Javascript is enabled for purposes of website accessibility

MoneyGram International Parts Ways With Cryptocurrency Developer Ripple

By Eric Volkman - Mar 9, 2021 at 8:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The two had had a cooperation agreement in place since 2019.

While many financial services companies are embracing cryptocurrencies, there is one notable recent exception. On Monday, MoneyGram International (MGI 2.75%) and Ripple Labs -- developers of the cryptocurrency XRP (XRP -0.89%) -- separately announced that they are ending their partnership, in an agreement that is effective immediately.

The news comes shortly after Ripple landed in hot legal water. Last December, the Securities and Exchange Commission (SEC) filed an action against Ripple and two of its top executives. According to the regulator, Ripple Labs has raised more than $1.3 billion via unregistered digital asset securities offerings conducted since 2013.

2 hands disconnecting extension cords.

Image source: Getty Images.

In disclosing the termination of their agreement, neither MoneyGram nor Ripple referenced the SEC's action. MoneyGram did point out that in December, it stopped transacting under the terms of the arrangement.

That agreement started in June 2019, after Ripple bought an equity stake in the financial services company. Under the terms of the deal, MoneyGram -- which is very active in the market for cross-border financial remittances -- used Ripple's ODL foreign exchange blockchain trading platform in order to transact in four currencies. After the SEC's action was made public, MoneyGram wrote in a press release that it "is not dependent on the Ripple platform to accomplish its FX trading needs."

Neither company provided any estimates for how the dissolution of their partnership would effect their fundamentals. Ripple seemed to imply that the door remains open, writing in a sort of post-mortem: "We are both committed to revisiting our relationship in the future. We still believe in the promise of digital assets and blockchain technology to change the status quo in global payments for the benefit of billions of consumers around the world."


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MoneyGram International, Inc. Stock Quote
MoneyGram International, Inc.
$9.73 (2.75%) $0.26
Ripple Stock Quote
$0.43 (-0.89%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.