On Wednesday (October 6), MoneyGram International, Inc. (NASDAQ: MGI), one of the world’s largest money transfer companies, announced a partnership with the Stellar Development Foundation, a non-profit organization that supports the development and growth of Stellar, an open network for storing and moving money.
According to the press release, this partnership will “enable cash funding and payout in local currency for consumers using USDC, as well as near-instant backend settlement capabilities.”
Cosnumers will be to “seamlessly convert USDC to cash, or cash to USDC,” which “increases the utility and liquidity of digital assets while also enabling more consumers to participate in the digital economy.”
Also, this partnership means that “settlement with MoneyGram will occur in near-real-time using Circle’s USDC,” which should allow “an accelerated collection of funds, improving efficiency and reducing risk.”
Alex Holmes, MoneyGram Chairman and CEO, had this to say:
“At MoneyGram, one of our top strategic priorities is to pioneer cross-border payment innovation and blockchain-enabled settlement, and we’re thrilled to now work with the Stellar Development Foundation to further our efforts.
“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.“
Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, stated:
“This partnership is a shining example of how blockchain technology and stablecoins bring new opportunities to global customers and enhance the existing financial system.
“Thanks to the reach of MoneyGram’s services and the speed and low cost of transactions on Stellar, a new segment of cash users will be able to convert their cash into and out of USDC, giving them access to fast and affordable digital asset services that may have previously been out of reach. We’re pleased to team up with MoneyGram to drive toward our mission of creating more equitable financial access.“
Jeremy Allaire, Co-founder, Chief Executive Officer, and Chairman of Circle, had this to say:
“The launch of this partnership speaks to the power of digital currencies like USDC to create fast, secure, and seamless settlement for the digital economy. Together, we’re at the forefront of innovation, demonstrating how we can reimagine financial services that benefit and better serve global users.“
Finally, Scott N. Beck, Director of United Texas Bank, the bank that is handling the settlement between Circle and MoneyGram, stated:
“We are pleased to play an integral part in completing the settlement process by working on this first of a kind direct USDC to USD settlement within a bank regulatory framework.“
This partnership is expected to launch in select markets in 2021, “with further international rollout planned in 2022.”
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