When MoneyGram Picked Stellar Over XRP Amid Ripple Lawsuit
In early 2021, international remittance big MoneyGram ended its high-profile partnership with Ripple Labs, citing challenges tied to the U.S. Securities and Alternate Fee’s (SEC) lawsuit towards Ripple. The lawsuit, filed in December 2020, alleged that Ripple had carried out unregistered securities choices by its sale of XRP.
On the time, MoneyGram had been one in every of Ripple’s most distinguished companions, utilizing RippleNet and XRP-based options for cross-border settlements. Nevertheless, regulatory uncertainty made it inconceivable to proceed.
“We had an awesome expertise with Ripple,” mentioned MoneyGram CEO Alexander Holmes in an interview with CoinDesk. “However with the adjustments and the problem that the SEC put ahead, it was very troublesome for us to proceed in that relationship. We each agreed to maneuver on.”
Why Stellar Was the Subsequent Alternative
MoneyGram later turned to Stellar (XLM), a blockchain co-founded by Jed McCaleb, who was additionally one in every of Ripple’s unique founders. In response to Holmes, Stellar’s providing was basically totally different from Ripple’s, with a deal with consumer-facing options and stablecoin integration.
“Ripple product was very totally different,” Holmes defined. “Ripple tends to deal with the back-end, cross-border funds move by RippleNet. Stellar approached us with a front-end shopper mannequin — the flexibility to function between fiat and stablecoins. It was an awesome concept, and we wished to be proactive and progressive in blockchain innovation.”
This shift allowed MoneyGram to pilot on/off-ramp companies for USDC stablecoin, making it simpler for customers to transform between digital belongings and fiat currencies throughout a number of nations.
“Stellar and Ripple can complement one another in distinctive methods,” Holmes mentioned. “They each have strengths in bridging the hole between conventional finance and blockchain.”
XRP Development Drivers Put up-Lawsuit
After years of courtroom battles, the long-running Ripple vs. SEC lawsuit formally led to August 2025. The decision marked a turning level for the crypto trade and instantly lifted market sentiment.
With authorized uncertainty lastly behind it, Ripple is specializing in real-world adoption. Present progress is being fueled by:
- Enlargement of latest fee corridors
- Rising stablecoin adoption
- Extra tokenized belongings launched on the XRP Ledger (XRPL)
The top of the lawsuit additionally eliminated a significant supply of promoting strain and chart manipulation, giving XRP extra room to commerce primarily based on market demand and utility.
Value Efficiency
XRP has proven energy because the ruling. The token broke out from its earlier vary close to $2.80 and climbed above $3.20. In the meantime, Ripple continues to construct momentum on the enterprise entrance. The corporate lately prolonged its digital asset custody partnership with BBVA, including a brand new retail service in Spain.
