MoneyGram International, one of the world's largest cross-border payment service providers, has announced a strategic collaboration with the Stellar blockchain. This partnership aims to create a stablecoin-based platform to facilitate seamless fund transfers.
Key Highlights of the MoneyGram-Stellar Partnership
- Stablecoin-Powered Transfers: Users of Stellar wallets can send USDC stablecoins to recipients, who can then cash out to fiat via MoneyGram's network.
- Bridge Between Crypto and Fiat: MoneyGram CEO Alex Holmes emphasized the company's goal to connect traditional finance with the crypto ecosystem during a Bloomberg interview.
- Expansion in Emerging Markets: Talks are underway with digital wallet providers in El Salvador, where Bitcoin is legal tender, to enhance crypto remittance services.
Background: From Ripple to Stellar
MoneyGram previously partnered with Ripple Labs, but the collaboration ended in 2021 following SEC litigation against Ripple. Six months later, MoneyGram joined forces with Stellar, launching a pilot phase in late 2021. Rumors also suggested Stellar’s interest in acquiring MoneyGram.
The Growing Role of Crypto in Global Payments
Cryptocurrency adoption continues to rise despite market volatility. Notable developments include:
Bitcoin as Legal Tender:
- El Salvador (2021) and the Central African Republic (2022) have adopted Bitcoin for everyday transactions.
- MoneyGram aims to support Bitcoin-to-fiat conversions in these regions.
Russia’s Crypto Proposals:
- Officials are exploring crypto for international trade amid SWIFT sanctions.
Opportunities for Payment Providers:
- Cross-border services like MoneyGram can leverage crypto to expand their offerings.
FAQs: MoneyGram and Stellar Collaboration
Q: How does the Stellar-MoneyGram wallet work?
A: Users send USDC via Stellar wallets; recipients cash out through MoneyGram’s global network.
Q: Why did MoneyGram switch from Ripple to Stellar?
A: The shift followed SEC legal action against Ripple. Stellar offered a compliant alternative for stablecoin transfers.
Q: Will MoneyGram support Bitcoin transfers?
A: The company is exploring partnerships with wallets like Chivo (El Salvador) to enable BTC conversions.
👉 Discover how Stellar’s blockchain transforms remittances
👉 Why stablecoins are the future of cross-border payments
About the Author: Ali is a freelance writer specializing in cryptocurrency markets, with 8 years of experience covering blockchain trends for platforms like CCN and NewsBTC.
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