MoneyGram International, a financial services company, has partnered up with the Stellar Development Foundation in order to allow consumers to send money using Circle’s popular stablecoin USD Coin (USDC), and convert to and from fiat.
MoneyGram announced that it has added support to allow crypto wallets to connect to the Stellar Network in order to access its global retail platform. MoneyGram, which will be working alongside Circle, will also allow “near-instant backend Settlement”, account funding and local fiat withdrawals with the USDC stable token.
United Texas Bank will be the settlement bank in order to complete the process within regulatory guidelines.
Alex Holmes, MoneyGram CEO and Chairman, stated, “As crypto currencies and digital currencies gain in prominence, we are especially optimistic about stablecoins’ potential as a means to streamline cross-border payment.”
The partnership will be launched in selected jurisdictions at the end 2021, with an expansion planned for 2022. Denelle Dixon, Stellar Development Foundation CEO and executive director, stated:
“A new segment will be able convert their cash in and out USDC. This will give them access to affordable and fast digital asset services that might have been impossible to reach previously.”
MoneyGram’s integration to Stellar follows a move by the company to allow customers to cash out crypto assets at its point-of sale outlets in the U.S. This service was developed in partnership with Coinme Inc., a crypto exchange operator and Bitcoin ATM.
Related: Biden admin weighs bank-like regulation of stablecoin issuers
MoneyGram is not new to blockchain technology. In June 2019, MoneyGram partnered with Ripple, a distributed ledger technology Ripple to work together on cross-border payments as well as foreign exchange settlements using digital assets.
The uncertainty surrounding the U.S Securities and Exchange Commission lawsuit against Ripple led to the deal rapidly going south. MoneyGram stopped supporting Ripple’s platform in the first quarter 2021.
After Jed McCaleb’s turbulent departure in 2014, Stellar was launched following Jed McCaleb’s co-founder at Ripple.
Circle published on October 4, filings that revealed it was cooperating with an SEC subpoena it received in July.