MoneyGram has begun using the Stellar blockchain to settle USDC transactions
MoneyGram users will be able to fund and withdraw funds from their accounts using the USDC stablecoin at physical locations thanks to the collaboration.
MoneyGram International, a financial services firm, has teamed up with the Stellar Development Foundation to allow customers to send money using Circle’s popular stablecoin, USD Coin (USDC), and convert it straight to and from fiat currency.
MoneyGram said on October 6 that it has incorporated support for crypto wallets connected to the Stellar Network, allowing them to use its worldwide retail platform. MoneyGram will offer “near-instant backend settlement,” account financing, and local fiat withdrawals utilizing the USDC stable token in collaboration with Circle.
To finish the transaction within the regulatory framework, United Texas Bank will serve as the settlement bank.
“As crypto and digital currencies gain traction, we’re particularly excited about the potential of stablecoins as a way to simplify cross-border payments.” Alex Holmes, Chairman, and CEO of MoneyGram stated.
The collaboration is set to start in chosen jurisdictions at the end of 2021, with a wider international deployment planned for 2022. The Stellar Development Foundation’s CEO and executive director, Denelle Dixon, said:
MoneyGram’s integration with Stellar comes only months after the company announced that its point-of-sale locations in the United States will allow clients to withdraw crypto assets for cash. Coinme Inc., a Bitcoin ATM and cryptocurrency exchange provider, partnered with Coinme to launch the service.
MoneyGram is no stranger to blockchain technology, having collaborated with Ripple, a distributed ledger platform, in June 2019 to work on cross-border payments and foreign currency settlements using digital assets.
The agreement, however, rapidly fell apart due to the uncertainties surrounding a lawsuit filed by the US Securities and Exchange Commission against Ripple. During the first quarter of 2021, MoneyGram stopped supporting Ripple’s platform.
Following his turbulent exit from the project in 2014, Ripple co-founder Jed McCaleb founded Stellar.
Circle filed documents on the 4th of October showing that it is cooperating with an SEC subpoena it received in July.