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- Ripple and its native token have seen a major status change since the XRP ruling.
- Old partner Moneygram is now tipped to reinstate the partnership.
Ripple’s XRP has been on the lips of every top crypto player since it gained a partial victory against the United States Securities and Exchange Commission (SEC) in July. Some new beneficial partnerships have sprung up as a result of the federal judge’s ruling that XRP is not secure when traded on secondary marketplaces.
On the other hand, old partners who previously burnt their bridges with the token, have made an effort to amend them.
Many of the exchanges which previously delisted the Ripple native token including Coinbase and Kraken, have suddenly had a change of heart and relisted the cryptocurrency. Now, some industry watchers are looking out for a possible collaboration between global money transfer giant MoneyGram and Ripple, the blockchain firm associated with the coin.
Ripple’s $50 Million Investment in MoneyGram: A Partnership’s Ups and Downs Amidst SEC Scrutiny.
Noteworthy, both fintech firms had previously been in a partnership that saw Ripple commit a $50 million capital to MoneyGram in 2019. This investment gave Ripple about 10% of the money transfer firm’s outstanding common stock at the time. As part of the agreement, MoneyGram used Ripple’s technology, xRapid which is now referred to as On-Demand Liquidity (ODL) to send money while using XRP as a bridge currency.
According to a filing with the SEC, the international remittance company generated up to $113 million from its strategic partnership with Ripple Labs. A press release further confirmed that the funds were received over two quarters in the 2019 fiscal year.
However, in 2021, MoneyGram suspended the arrangement indefinitely and it was suspected to be an effect of the SEC lawsuit against Ripple which was about three months old at the time. To limit the disappointment, Ripple explained to its community members that its contract with MoneyGram “is still in place and is not limited to their use of ODL”.
Industry Watchers Expect MoneyGram to Reinstate Partnership With Ripple
Now that Ripple XRP has had its status cleared by a federal judge, it is only expected that MoneyGram reinstate the payment firm. If this eventually happens, it may serve as a significant boost for XRP, which like many other altcoins, is currently not performing well due to a broad sluggish momentum in the market.
Markedly, the broad cryptocurrency ecosystem has been faced with so much turbulence in the past week. This has led to a downward trend in the price of tokens and many market capitalizations have come crashing to unbelievable levels. This week, however, came with a glimpse of hope suggesting potential recovery.
On-chain analytic firm Santiment claimed that Ripple’s XRP, Litecoin (LTC), and Stellar (XLM) are leading the slight market recovery which began this week. XRP is down by 1.46% and is currently trading at $0.5178. With all of these relistings and reinstatement of strategic partnerships like that of MoneyGram, the price of XRP has the potential to hit new levels up to $5 in the long term.
