MoneyGram to Working on a Stablecoin-based Payment System

MoneyGram to Working on a Stablecoin-based Payment System

June 1, 2022 Off By Roland G

MoneyGram is preparing to launch a service in partnership with the Stellar blockchain that will allow clients to easily send and receive stablecoins and convert them to actual currency. This move by one of the country’s largest money-transfer companies could help digital currencies gain acceptability.

MoneyGram | Source: PR Newswire

Gokhshtein Media, a blockchain and lifestyle media company, announced the news on Twitter, saying, 

“MoneyGram International is now creating a stablecoin-based platform for money transfers. The new platform will allow Stellar wallet users to send Circle’s $USD Coin to recipients, who will then be able to transfer over to fiat and cash out.”

USDC is the stablecoin used in MoneyGram’s partnership with Stellar. The coin is fully backed by safe liquid assets, so a de-pegging appears impossible, according to Dante Disparte, chief strategy officer and head of worldwide policy at Circle.

MoneyGram accepted the takeover interest in July from the Stellar Development Foundation, the nonprofit that runs the Stellar blockchain, and Advent International. In October, the firm partnered with Stellar to build a crypto remittance service, and in November, they launched a test program.

Recently, Stellar Development Foundation (SDF) teamed up with Mercado Bitcoin, Latin America’s largest exchange, to develop one of the nine projects chosen for the LIFT Challenge Real Digital.