MoneyGram is facing difficulty finding another source of income, says the report published on Feb. 26 by The Wall Street Journal.
According to a report published by the Wall Street Journal on February 26, MoneyGram, which is an American company for money transfer and operating in over 200 countries since 1940, is struggling for a financial source after halting its partnership with Ripple. This past week, MoneyGram revealed the news of suspending its partnership with Ripple from last December, when the security exchange Commission (SEC) of the United States suspected Ripple because of violating protection laws of the investors. According to the case filed two months ago by the SEC, revealed that Ripple had conducted $1.3 billion in sales having unrecognized securities using its platform and XRP cryptocurrencies.
Ripple is a public payment network design for trade and transactions. Ripple has designed its very own digital currency (XRP), but it allows everyone to use it. MoneyGram had been using the ripple’s payments to utilize XRP tokens since 2019 for the sake of international settlements. In fact, according to the published reports, Ripple was providing financial credits and incentives to use their platform, helping Moneygram to expand in new Global markets.
Last year, Ripple provided a fee of about $38 million to Moneygram for the sake of development in the market, but recently, MoneyGram has kept these payments on hold until the legal clearance between the US security exchange commission and Ripple Labs. MoneyGram will keep checking the cryptocurrencies and blockchains as both are important for their future. Alternate options for the MoneyGram are still ambiguous, especially for the Global transactions where there is no other comparable option.
According to the CFO of MoneyGram, Mr. Larry Angelilli, both companies are trying to find some alternatives. He also says that they would have no problem in renewing the relationships, but the case of Ripple labs is expected to drug for a long time. As far as Ripple is concerned, its statements are clearly in favor of MoneyGram as it says that it would like to find a way forward to work with Moneygram.
According to the Monday reports of the company, the stocks of the MoneyGram have plunged sharply from 28% to $7.77 and dropped further from 23% to $8.38, and ultimately closed at $6.84.