MoneyGram Collaborates With Stellar For Stable Payments

OVERVIEW

  • MoneyGram and Stellar have teamed up to make blockchain payments.
  • Stellar, a Ripple competitor, employs USDC for transactions.
  • In the fourth quarter of 2021, the integration will go online.

Moneygram announced intentions to leverage the Stellar blockchain to enable its users to make USDC stablecoin payments and settle incoming money in USDC.

Moneygram payments can also be settled in near-real time. The solution will go online this year, with a global rollout scheduled for 2022.

Moneygram isn’t a blockchain newbie. It inked a partnership with Ripple in 2019 under which Ripple will invest $50 million in the startup.

Moneygram also embraced Ripple’s On Demand Liquidity (ODL) foreign exchange solution, which employs the XRP cryptocurrency as an intermediary token.

Moneygram eventually stopped the agreement in February 2021 after the SEC sued Ripple, saying that the XRP cryptocurrency constitutes a security breach.

Ripple reported a few weeks later that the agreement had been mutually terminated. Moneygram had used Ripple’s solution to process billions of dollars in transfers, according to Ripple.

CEO and Executive director of stellarorg Denelle Dixon summed up the whole partnership fundamentals in a series of tweets.

She also wrote that cash users will get to convert their whole cash into USDC.

Meanwhile, Jed McCaleb, who was also a co-founder of Ripple but had a tumultuous relationship with the company, established Stellar.

Huge step forward for the Stellar ecosystem! This makes so many things possible,” McCaleb wrote in a tweet.

According to an Observer article, the feud stemmed from McCaleb’s attempt to sell Ripple to Stripe on his own in 2013.

In related developments, Bloomberg reported earlier this year that Stellar was considering acquiring Moneygram.

“At MoneyGram, one of our top strategic priorities is to pioneer cross-border payment innovation and blockchain-enabled settlement.”— Alex Holmes, MoneyGram Chairman and CEO.

“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.” he further added.

IBM’s IBM World Wire product had previously partnered with Stellar for cross-border payments. In May of this year, though, Stellar experienced a two-hour outage.

Jesse Lund, the former banker who managed the IBM project, abruptly left a few weeks later. World Wire was quietly abandoned by IBM.

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IMAGE CREDITS: NURPHOTO VIA GETTY IMAGES

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