MoneyGram is partnering with the Stellar Development Foundation to enable customers to send money using USD Coin (USDC). Users will also be able to convert their money between the popular stablecoin and fiat. This will reportedly take place at physical branches.
According to a report, MoneyGram now allows crypto wallets connected to the Stellar Network access to its global retail platform. By collaborating with Circle, the financial services company enables a host of new transaction features. These include account funding and local fiat withdrawals using the USDC stable token. Furthermore, the United Texas Bank will complete the process within the regulatory framework.
Alex Holmes, chairman and CEO of MoneyGram commented on his company taking advantage of the emerging crypto space. He remarked that the integration of crypto into MoneyGram’s transactional services is promising. According to Holmes:
“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.”
This partnership will launch at the end of this year in select jurisdictions. Subsequent rollout will begin in 2022 and is expected to also cover international channels.
This is not MoneyGram’s first venture into the crypto space. The company partnered with Ripple in June 2019 on cross-border payments and foreign exchange settlements with digital assets. However, Ripple got caught in a lawsuit from the SEC and the deal fell through. MoneyGram subsequently suspended support for Ripple’s platform in early 2021.
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