- MoneyGram Announces Innovative Partnership with the Stellar Development Foundation to Utilize Blockchain Technology.
- Partnership will revolutionize settlement flows by facilitating near-instant settlement in USDC.
- The integration goes live in the last quarter of 2021.
MoneyGram International, Inc., one of the largest money transfer services in the world, is partnering with the Stellar Development Foundation, a non-profit organization that supports the development of Stellar, a blockchain network that facilitates cross-border transactions. The Stellar network utilizes the XLM coin to operate, currently priced at $0.327 with a $7.8 billion market capitalization.
MoneyGram is now allied with a chief competitor to its previous partner Ripple, which offers a similar product for international payments.
This partnership will contribute to lowering the costs associated with remittances. This is one of the UN’s proposed Sustainable Development Goals, which aims to lower remittance costs from 7% to 3% of the funds sent. The service is scheduled to launch in select markets by the end of this year, with further international rollout planned in 2022, though no additional details, including pricing, have been shared.
Alex Holmes, CEO of Moneygram stated:
“As crypto and digital currencies rise in prominence, we’re especially optimistic about the potential of stablecoins as a method to streamline cross-border payments… we are extremely well-positioned to continue to be the leader in building bridges to connect digital currencies with local fiat currencies”.
For consumers, the partnership will provide the ability to seamlessly convert USDC to cash, or cash to USDC. This increases the utility and liquidity of digital assets while also enabling more consumers to participate in the digital economy. The impact of this partnership is expected to grow as more wallets and companies join the Stellar network.
“The launch of this partnership speaks to the power of digital currencies like USDC to create fast, secure, and seamless settlement for the digital economy,” added Jeremy Allaire, Co-founder, Chief Executive Officer, and Chairman of Circle. “Together, we’re at the forefront of innovation, demonstrating how we can reimagine financial services that benefit and better serve global users.
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