MoneyGram Partners With Stellar to facilitate instant transactions using USDC Stablecoin
- ByStartupStory | October 9, 2021
MoneyGram, the payments giant, announced its partnership with the Stellar Development Foundation to use the Stellar blockchain, to facilitate cross-border payments. According to the payment giant, USD 4,444 will enable settlement with MoneyGram in “near real-time” for the first time.
MoneyGram payments on the Stellar blockchain will use the world’s second-largest stablecoin, Circle’s USD Coin (USDC).
MoneyGram President and CEO Alex Holmes explains, “As crypto and digital currencies become increasingly important, we are extremely optimistic about the potential of stablecoins as a method to streamline cross-border payments. Stellar’s native XLM asset is currently being As of writing, it traded at $0.349708, up 6.5% on the day and nearly 29% in the past week, according to CoinGecko.
Ripple and MoneyGram entered into a partnership in June 2019 for foreign exchange settlements and cross-border payments.
However, the payment giant suspended the use of XRP payments last February following the US Securities and Exchange Commission (SEC) lawsuit against Ripple.
As part of the deal, Ripple made a $50 million commitment to MoneyGram, which it completed in November 2019.
The SEC filed a lawsuit against Ripple Labs in late December, alleging that XRP is a security and alleging that Ripple Labs had illegally sold large amounts of the crypto assets without complying with regulations.
In February, Holmes said MoneyGram was monitoring the SEC matter and had suspended the use of Ripple’s XRPpowered cross-border payment product, OnDemand Liquidity, out of “excessive caution”. The CEO also said the company hopes to continue its partnership with Ripple in the future.
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