Few months after Ripple and its former partner MoneyGram separated, its rival Stellar started negotiations to buy the leading remittances company. MoneyGram announced a partnership with Stellar.
MoneyGram and Stellar Partnership to Close Crypto-assets and Fiat Currencies Gap
MoneyGram International, Inc. announced a partnership with Ripple’s competitor, the Stellar Development Foundation, a nonprofit that supports the development of Stellar, and Stellar, an open-source, public blockchain network that enables cross-border transactions, earlier today.
Earlier this year, Ripple and MoneyGram ended their partnership after MoneyGram suspended transactions on the Ripple platform to replace the ongoing XRP lawsuit.
The exclusive partnership between MoneyGram and the Stellar blockchain will provide consumers with cash funding and payments in multiple local currencies (from US dollars to Japanese yen). This means that the collaboration aims to close the gap between crypto-assets and fiat currencies and make virtual currencies even more accessible.
“You can get your cash at MoneyGram’s location and put it on the blockchain, and you don’t have to have a bank account … even if you don’t have a bank account to withdraw your money from a blockchain asset like Stellar. [Now] you can by entering the MoneyGram location and collecting your money there, “said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation.
The Fastest USDC to USD Conversion Service
The financing and payment process is facilitated by the USD Coin (USDC), the fastest-growing dollar digital currency globally. These companies claim to provide hassle-free USDC to cash and cash to USDC conversion services.
The network is designed to allow near-instant back-end settlement, which speeds up fundraising, increases efficiency, and reduces risk. In addition, this will be the first direct settlement in US dollar coin versus US dollars within the regulatory framework, with Texas Union Bank acting as the settlement bank.
With the emergence of cryptocurrencies and digital currencies, we are particularly optimistic about the potential of stablecoins as a method of simplifying cross-border payments. With their expertise in global payments, blockchain and compliance, they are very much in a position to continue to lead the bridge that connects digital currency and local fiat currency, said Alex Holmes, Chairman and CEO of MoneyGram.