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.

 

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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.