The partnership between MoneyGram and Stellar Development Foundation enables utilization of blockchain-based payments technology
In an announcement on Monday, MoneyGram, the world’s largest cross-border payments company, said that it is collaborating with the Stellar blockchain network to provide quick money transfers using Circle’s USDC stable coin.
In the fourth quarter of this year, the companies will launch a trial. The ledger-based stable coin bridge between crypto and local currencies will be gradually rolled out in early 2022.
In an interview, Denelle Dixon, CEO and executive director of the Stellar Development Foundation stated: “Working with MoneyGram allows end consumers to have on- and off-ramps everywhere that MoneyGram’s vast agent network supports this. So this is just transformational in terms of being able to exchange crypto for fiat and fiat for crypto.”
The collaboration will improve the usability and liquidity of digital assets while also allowing more people to join the digital economy. As more wallets and businesses join the Stellar network, the partnership’s influence is projected to rise. This collaboration also transforms the settlement process for the first time, with settlement taking place in near-real-time.
Alex Holmes, MoneyGram Chairman, and CEO makes a statement about their top strategic priority: to pioneer cross-border payment innovation and blockchain-enabled settlement. They are also “thrilled” to work with the Stellar Development Foundation.
MoneyGram’s partnership with Stellar is the latest step in the company’s quest to lead the growth of digital peer-to-peer payments. MoneyGram was the first money transfer company to use blockchain technology in its foreign currency operations, and it has formed several creative collaborations that give consumers widespread access to digital currencies.
CBW - External Analyst