The financial services company MoneyGram International has partnered with the Stellar Development Foundation to enable consumers to send money using Circle’s popular USD Coin (USDC) stablecoin, as well as transfer money directly to and from fiat currencies.
According to the announcement on October 6, MoneyGram has integrated support that gives cryptocurrency wallets connected to the Stellar network access to its global retail platform. In partnership with Circle, MoneyGram will also offer “near instant refund”, on-site deposits and withdrawals using USDC stablecoin.
United Texas Bank will act as a settlement bank to complete the settlement process.
“Given the growing popularity of cryptocurrencies and digital currencies, we are particularly optimistic about the potential of stack coins as a way to facilitate international payments.” said Alex Holmes, chairman and CEO of MoneyGram.
The partnership is expected to begin in late 2021 in selected jurisdictions, with international planning expanding into 2022. Denil Dixon, CEO of the Stellar Development Foundation, stated:
“A new segment of cash users will be able to transfer their money to and from the USDC, giving them access to fast and affordable digital asset services that may have been previously unavailable.”
MoneyGram’s integration with Stellar came just months after the company began allowing customers to withdraw cryptoassettes for cash through US merchants.
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MoneyGram, a blockchain-conscious company, partnered with Ripple’s distributed ledger technology in June 2019 to collaborate on cross-border payments and settlement in foreign currency using digital assets.
However, the agreement changed quickly due to the uncertainty surrounding the US Securities and Exchange Commission’s lawsuit against Ripple. MoneyGram has suspended support for the Ripple platform in the first quarter of 2021.
Stellar was launched by Ripple founder Jed McCaleb after his tumultuous departure from the project in 2014.
On October 4, the circuit published documents showing that it is cooperating with a subpoena from the Securities and Exchange Commission received in July.