MoneyGram users will be able to fund and withdraw from their accounts using the USDC stablecoin at physical branches as a result of the cooperation.
MoneyGram International, a financial services provider, has teamed with the Stellar Development Foundation to enable consumers to transfer and receive money using Circle’s popular stablecoin, USD Coin (USDC), and to convert straight to and from fiat currency.
MoneyGram said on 6 October that it has incorporated support for crypto wallets connected to the Stellar Network, enabling them to use its global retail platform. MoneyGram will also provide “near-instant backend settlement,” account funding, and local fiat withdrawals using the USDC stable coin in collaboration with Circle.
United Texas Bank will serve as the settlement bank for the transaction, ensuring that it is completed within the regulatory framework.
“With the rise of crypto and digital currencies, we’re particularly bullish about the potential of stablecoins to expedite cross-border payments.” MoneyGram Chairman and CEO Alex Holmes stated.
The alliance is scheduled to debut in chosen jurisdictions at the end of 2021, with a larger international rollout planned for 2022. Denelle Dixon, the Stellar Development Foundation’s CEO and executive director stated:
“A new segment of cash users will be able to convert their cash into and out of USDC, giving them access to fast and affordable digital asset services that may have previously been out of reach.”
MoneyGram’s integration with Stellar comes only months after the company began accepting crypto assets in exchange for cash at its point-of-sale locations around the United States. The service was launched in collaboration with Coinme Inc., a Bitcoin ATM, and cryptocurrency exchange provider.
MoneyGram is no stranger to blockchain technology; in June 2019, the company teamed with distributed ledger technology Ripple to collaborate on cross-border payments and foreign currency settlements using digital assets.
The arrangement, however, swiftly unraveled due to the uncertainties surrounding the US Securities and Exchange Commission’s case against Ripple. MoneyGram announced that it would discontinue support for Ripple’s technology in the first quarter of 2021.
Stellar was founded by Jed McCaleb, a co-founder of Ripple, following his turbulent exit from the project in 2014. Circle issued documents on 4 October indicating that it is cooperating with an SEC subpoena received in July.
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