MoneyGram partners Stellar Development Foundation for settling remittances services using USDC
The partnership will enable cash funding and payout in local currency for consumers using USDC
What can be seen as a new era in global remittances services, Global cross-border P2P payments and money transfer firm, MoneyGam has partnered with Stellar Development Foundation, a non-profit organization that supports the development and growth of Stellar for settling cross-border payments using USD Coin (USDC).
Stellar is an open-source public blockchain that allows money to be tokenized and transferred anywhere in the world.
Under this partnership, MoneyGram network will be integrated with the Stellar blockchain and facilitated through Circle’s USD Coin (USDC) that will enable cash funding and payout in local currency for consumers using USDC, as well as near-instant backend settlement capabilities.
For consumers, the partnership will provide the ability to seamlessly convert USDC to cash, or cash to USDC.
This increases the utility and liquidity of digital assets while also enabling more consumers to participate in the digital economy. The impact of this partnership is expected to grow as more wallets and companies join the Stellar network.
After the integration, settlements with MoneyGram will occur in near-real-time using USDC, the world’s fastest growing dollar digital currency. This also enables an accelerated collection of funds, improving efficiency and reducing risk.
“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. Given our expertise in global payments, blockchain, and compliance, we are extremely well-positioned to continue to be the leader in building bridges to connect digital currencies with local fiat currencies,”
-Alex Holmes, MoneyGram Chairman and CEO
MoneyGram was the first money transfer company to utilize blockchain technology as part of its foreign exchange trading and has since launched several innovative partnerships that provide broad consumer access to digital currencies.
Stellar Development Foundation CEO and Executive Director Denelle Dixon said, “This partnership is a shining example of how blockchain technology and stablecoins bring new opportunities to global customers and enhance the existing financial system.”
Demonstrating how this partnership will benefit and better serve global users, Circle Chief Executive Officer and Chairman Jeremy Allaire said, “The launch of this partnership speaks to the power of digital currencies like USDC to create fast, secure, and seamless settlement for the digital economy.”
United Texas Bank will serve as a settlement bank between Circle and MoneyGram. The partnership is scheduled to go live in select markets in 2021, with further international rollout planned in 2022.