Moneygram Partners with Stellar Development Foundation to Allow Users to Transfer Using USD Coin – Bitcoin News

Moneygram, one of the leaders in the cross-border payments and remittances market, has partnered with the Stellar Development Foundation to use the Stellar blockchain for settlements. The company will use the native version of USD coin (USDC), a popular stablecoin, to simplify and speed up the transfer process. This also means that Moneygram will act as a fiat on- and off-ramp service for USD coin users.

Moneygram uses crypto for transfers

Moneygram, a Dallas, Texas-based payments and remittance company, has announced a partnership with the Stellar Development Foundation, the development and growth arm for the Stellar blockchain, to leverage its capabilities to process payments and facilitate remittances. The company will use the native version of USDC on the Stellar blockchain to move funds more easily and effectively.

However, neither Moneygram nor Circle are banks. United Texas Bank will serve as the settlement bank between Circle and MoneyGram, acting as a liaison between the two institutions.

Moneygram is now becoming an off-ramp for USD coin users as a way to receive fiat funds and vice versa to add value to the USDC ecosystem. Moneygram was one of the first money transfer companies to integrate Blockchain when it partnered with . Ripple announced. However, this partnership was dissolved after the SEC announced in December 2020 that it would take legal action against the company.

Easier, faster and cheaper

The new system to be implemented by the company is intended to enable almost instantaneous settlement times with low fees and no implied volatility through the use of stablecoins thanks to the Stellar blockchain. Speaking about the importance of these tools, Moneygram CEO Alex Holmes said:

As cryptocurrencies and digital currencies gain traction, we are particularly optimistic about the potential of stablecoins as a method to streamline cross-border payments… fiat currencies.

According to Circle, this is partnership will help reduce costs associated with remittances. This is one of the Sustainable Development Goals proposed by the United Nations, which aims to reduce the cost of remittances from 7% to 3% of funds sent. It will be interesting to see if cryptocurrencies can help achieve this goal in the short term.

What do you think of Moneygram's partnership with Stellar Development Foundation? Tell us in the comments section below.

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