MoneyGram International is partnering with the Stellar blockchain to create a stablecoin based platform for money transfers.
The new service will let Stellar wallet users to send Circle’s USD Coin to recipients, who will be able to cash them out for fiat currency through the MoneyGram network.
MoneyGram CEO Alex Holmes said that they are in talks with third-party companies that provide digital wallets in El Salvador alongside the government supported Chivo wallets, which were introduced when the country made Bitcoin a legal tender. Through a deal with one of those companies, MoneyGram would be able to compete for BTC transfers as well.
MoneyGram had a deal with Ripple Labs, which once owned a large package of its stock. Ripple and MoneyGram cut their relationship in March 2021 shortly after the United States Securities and Exchange Commission filed a lawsuit against Ripple. MoneyGram’s involvement with Ripple resulted in a law suit against the payment service in March 2021.
MoneyGram and Stellar began working together in October 2021 and launched a pilot program in November. Earlier that summer, reports stated that Stellar was interested in a takeover of MoneyGram.
