One of the largest money transfer services in the world, MoneyGram, 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. This is not the first time MoneyGram has partnered with a blockchain firm. Earlier, the international money transfer service company had partnered with Ripple Labs.
The partnership will enable cash funding and payout in multiple currencies.
Through the partnership, MoneyGram’s network will integrate with the Stellar blockchain to enable cash funding and payout in multiple currencies, be it a U.S. dollar or Japanese yen, using USD Coin (USDC), a stablecoin governed by Coinbase and Circle through the Centre consortium, according to Denelle Dixon, CEO and executive director of the Stellar Development Foundation. Initially developed on the Ethereum blockchain, USD Coin went live on Stellar in February.
Customers will be able to convert cash into and out of USDC.
With this partnership, customers will be able to convert cash into and out of USDC for instant pickup at MoneyGram locations. On the backend, Dallas-based FDIC-insured United Texas Bank will facilitate settlement between Circle and MoneyGram. The service is scheduled to launch in select markets by the end of this year, with a further international rollout planned in 2022, though no additional details, including pricing, have been shared. “We’re enabling consumers to bridge crypto assets and fiat currency,” says Alex Holmes, chairman and CEO of MoneyGram International, “and we think that we can be a pioneer and a leader in that opportunity.”