The digital P2P payments giant, MoneyGram International, Inc. announced a partnership with Ripple’s competitor, Stellar Development Foundation, a non-profit organization that supports the development of Stellar, an open-source public blockchain network facilitating cross-border transactions. Earlier this year, Ripple and MoneyGram wound down their partnership as MoneyGram suspended trading on Ripple’s platform in lieu of the ongoing XRP lawsuit.
Bridge the Fiat to Virtual Currency Gap
MoneyGram and Stellar blockchain’s exclusive partnership will delegate cash funding and payout for its consumers, in several local currencies, which extends from Dollar to Yen. This means that the collaboration is aimed at bridging the gap between crypto-assets and fiat currency, and further making the virtual currency more accessible.
“You can bring in your cash into a MoneyGram location and bring it onto the blockchain, and you don’t have to have a bank account to do that…And the same is true if you don’t have a bank account to pull your assets off of the blockchain like Stellar. [Now] you can do that by going into a MoneyGram location and picking up your cash there.”, said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation.
First of a Kind Direct USDC to USD settlement
The funding and pay-out process will be facilitated through the world’s fastest-growing dollar digital currency, Circle’s USD Coin (USDC). The companies claim to run a hassle-free conversion service of USDC to cash, and cash to USDC.
The network aims to accommodate near-instant backend settlements, enabling an accelerated collection of funds, improved efficiency, and reduced risk. Furthermore, this will be the first of a kind direct USDC to USD settlement within a bank’s regulatory framework, with the United Texas Bank serving as the settlement bank.
“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. Given our expertise in global payments, blockchain, and compliance, we are extremely well-positioned to continue to be the leader in building bridges to connect digital currencies with local fiat currencies.”, said Alex Holmes, MoneyGram Chairman, and CEO.
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