MoneyGram to open transfer platform with Stellar, eyes wallet deal in El Salvador

MoneyGram Worldwide, one of many world’s largest cross-border switch companies, is partnering with the Stellar blockchain to create a stablecoin-based platform for cash transfers. The brand new service will enable Stellar pockets customers to ship Circle’s USD Coin (USDC) to recipients, who will have the ability to money them out for fiat forex via the MoneyGram community.

“We’re attempting to be a bridge from the crypto world to the fiat world,” MoneyGram CEO Alex Holmes said in an interview.

Holmes additionally stated MoneyGram is in talks with third-party corporations that present digital wallets in El Salvador alongside the government-backed Chivo wallets, which have been launched when the nation made Bitcoin (BTC) authorized tender final 12 months. Via a cope with a kind of corporations, MoneyGram would have the ability to compete for BTC transfers as effectively.

“If a rustic like El Salvador goes to make Bitcoin seamless with US {dollars} in nation, I believe that buyers, via MoneyGram, ought to have the ability to switch Bitcoin to El Salvador or switch {dollars} and convert them to Bitcoin,” Holmes informed Bloomberg. “If that’s the place the world goes, let’s take part in that world and let’s see how we may help fulfill that chance.”

Associated: Moneygram buys 4% stake in crypto ATM operator Coinme

MoneyGram had a earlier cope with Ripple Labs, which once owned a large package of its inventory. Ripple and MoneyGram severed their relationship in March 2021 shortly after america Securities and Trade Fee filed a lawsuit in opposition to Ripple. MoneyGram’s involvement with Ripple resulted in a class-action suit in opposition to the fee service in March 2021.

MoneyGram and Stellar began working together in October 2021 and launched a pilot program in November. Earlier that summer time, stories circulated that Stellar was all for a takeover of MoneyGram.