Moneygram Announces Partnership With Stellar to Improve Remittance Transactions

8 October 2021 | Updated: 8 October 2021

Texas-based payments and remittances company Moneygram recently announced a strategic partnership with Stellar Development Foundation—the development and growth division of Stellar (XLM) blockchain—allowing it to tap into Stellar’s payments and remittance capabilities. The payments company will utilize the native USDC (USD Coin) on the Stellar blockchain to facilitate stress-free and efficient funds transfer.

Because neither Monegram nor Circle (the host company of USDC) are banks, the United Texas Bank will serve as a settlement conduit between the two institutions.

The multinational remittance company now serves as an off-ramp for USDC users to get fiat funds and vice-versa, bringing more value to the USDC ecosystem.

Moneygram continues to showcase its devotion to adopting new technologies to improve its services. The Texas-based institution was one of the pioneering remittance companies to integrate blockchain following its early partnership with Ripple. However, it had to break ties with Ripple Labs following the announcement of legal action by the SEC in December 2020.

Moneygram Working in Line With UN’s Proposed Sustainable Development Goals

The proposed system by the company should allow for instant settlements at significantly low fees due to the Stellar blockchain-effect, and no implied volatility due to the use of USDC, a stablecoin. Commenting on the latest development, CEO of Moneygram Alex Holmes noted that:

“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.”

In an official release, Circle asserted that this partnership should reduce costs associated with remittances. This aim is in line with one of the United Nations’ proposed Sustainable Development Goals, which aims at dropping remittance costs from 7% to 3% of funds sent.

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

USD Coin (USDC): An Introductory Beginners’ Guide

18 July 2021 | Updated: 18 July 2021

USD Coin (USDC) is a stablecoin pegged to the US dollar, meaning that it performs exactly how the dollar does. The stablecoin, launched in September 2018, is a joint project between Circle and crypto giant Coinbase.

USDC is an alternative to other USD-pegged stablecoins like Tether (USDT) and TrueUSD (TUSD). In summary, USD Coin is a crypto project that tokenizes the US dollar and facilitates several uses on the internet and public blockchains. Meanwhile, the process of issuing or redeeming USDC tokens gets guaranteed with ERC-20 Smart Contracts.

Integrating the US dollar on a blockchain allows for the seamless use of funds anywhere on the planet in little time, bringing highly-desired stability to cryptocurrencies.

Here’s how USD Coin Works

Circle, a partnering company behind USDC, ensures that every USDC token gets tied to a single US dollar. The process of converting US dollars into USDC tokens is known as tokenization.

Tokenization of USD into USDC typically follow three steps, including:

  • Step 1
    The user sends USD to the token issuer’s bank account.
  • Step 2
    The issuer utilizes USDC Smart Contracts to create an equivalent amount of USDC.
  • Step 3
    The newly minted USD Coins get delivered to the user’s digital currency wallet, while the substituted US dollars find their way to reserve storage.

The above procedure applies to the issuance of USDC. Now, let us look at the process of redeeming these tokens for USD. Listed below is the process behind the redemption of USDC:

  • Step 1
    The user sends a redemption request to the USDC issuer.
  • Step 2
    The issuer forwards a request to the USDC Smart Contracts to exchange the tokens for USD and take the equivalent amount of tokens from the USDC circulatory supply.
  • Step 3
    The issuer then sends the requested amount of USD from its reserves to the user’s bank account. Fees get charged to the user.

Unlike most other stablecoins, the creators of USD Coin ensured that the project provided complete transparency to the public and work with an array of financial institutions to maintain full reserves of the equivalent fiat currency (USD).

That said, all USDC issuers are mandated to report their USD holdings frequently, which then get published by Grant Thornton LLP.

Where to Acquire USD Coin?

USDC is readily available for purchase on several cryptocurrency exchanges, including Binance, Polionex, Coinbase Pro, Coinbase, CoinEx, OKEx, Kucoin, and many more.

USD Coin: The Journey So Far

The second-largest stablecoin currently operates under the backing of several credible institutions. Since its launch in 2018, the USDC ecosystem has partnered with over 60 entities. Meanwhile, to maintain control against the illicit use of the stablecoin, the developers of the stablecoin can blacklist addresses and freeze funds if they sense foul play or illegality.

Finally, other similar projects to the USDC include USDT (Tether), TUSD (TrueUSD), GUSD (Gemini Dollar), DAI (Dai), and PAX (Paxos Standard Token).

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.