- XRP’s return to Coinbase after its partial SEC victory reignites speculation of a renewed alliance with MoneyGram.
- Past collaborations between Ripple and MoneyGram yielded significant financial gains, but regulatory concerns led to a pause in 2021.
The Ripple-MoneyGram Nexus: A Glimpse Back and What Lies Ahead
The re-emergence of XRP on Coinbase, following its vindication against the Securities and Exchange Commission (SEC), has once again stirred the pot of speculations. The focal point? A possible revival of the collaborative ties between Ripple, the force behind XRP, and MoneyGram, a behemoth in global remittances.
Ripple and MoneyGram: A Partnership Timeline
Back in 2018, MoneyGram welcomed Ripple’s technology into its corridors, enhancing its cross-border settlements. Ripple’s investment spree in the following year saw a $50 million contract with MoneyGram. This partnership was fruitful, resulting in MoneyGram pocketing $11.3 million within 2019 itself. However, a regulatory cloud cast by the SEC over XRP’s status triggered the suspension of this partnership in March 2021.
The recent judicial proclamation, declaring XRP not as a security, has been groundbreaking. This not only uplifts XRP’s stance but also nudges entities like MoneyGram to re-evaluate their relationships with Ripple.
Delving into the past, John Deaton, a renowned crypto laws expert, has been vocal on Twitter about the intricate dynamics between MoneyGram, XRP, and the SEC. Deaton questioned the motives behind former SEC Chairman Jay Clayton’s decision to drop the XRP case right before his departure, highlighting Clayton’s interactions with his successor, Gary Gensler.
After Coinbase listed #XRP in late February 2019, @MoneyGram filed a notice with the SEC and read what it said:
“This agreement will enable MoneyGram to utilize Ripple’s xRapid product (XRP) in foreign exchange settlement as part of the MoneyGram’s cross-border payment process.” pic.twitter.com/gpXcx9YQuw
— John E Deaton (@JohnEDeaton1) April 14, 2023
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It’s perplexing that the SEC, which previously supported the MoneyGram-XRP collaboration, later contested XRP’s legal standing. Deaton points out that the regulatory body’s theory about XRP’s status doesn’t resonate with the MoneyGram-Ripple partnership’s nature.
Adding another layer to the narrative, MoneyGram, in 2019, was guided by the SEC to categorize its XRP transactions as a contra expense, a classification that has historically never indicated a security status. This guidance by the SEC stood in stark contrast to their later claims against XRP.
Moreover, a 2019 report by the Financial Stability Oversight Council (FSOC), endorsed by Clayton, recognized XRP alongside other crypto giants, refraining from tagging it as a security.
Peering into the Future
Given the flux of events and the SEC’s shifting stance on XRP, the attention now pivots towards MoneyGram’s imminent moves. The crypto world waits with bated breath to see if MoneyGram will exploit the newly attained regulatory clarity and rejuvenate its bond with XRP.
This development could supercharge MoneyGram’s technological prowess in cross-border payments, a sector where it already collaborated with Visa in 2020. In parallel, Stellar (XLM), seen as XRP’s competition, is also making its strategic moves, hinting at the evolving dynamics in the remittance space.
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