Cash transfer firm MoneyGram is teaming up with the Stellar Development Foundation to allow crypto payouts in local coinage for users, based on a Wednesday announcement.
The collaboration will undoubtedly see MoneyGram use Circle’s USDC to convert payouts to a user’s local currency and settle payments. MoneyGram’s network will certainly be blended with the Stellar blockchain to clear up the USDC exchanges. In addition, the United Texas Bank will step in as the settlement bank in between Circle and MoneyGram.
The MoneyGram Chairman and Chief Executive Officer, Alex Holmes, claimed the firm is particularly favorable of stablecoins to allow settlement and cross-border payment.
“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,” Holmes stated in today’s news.
Formerly, MoneyGram had a positioned partnership with Ripple. It finished that collaboration in March of 2021 as Ripple kept up the war with the SEC to determine whether the XRP token accounted for unregistered protection.
Despite stablecoins’ pledge in cross-border settlements, U.S. regulators are bent on reevaluating dollar-pegged tokens. Circle remains firm in taking on an investigation from the SEC’s Division of Enforcement. Acting Comptroller Michael Hsu has voiced seeing stablecoin issuers via the lens of the U.S.’s wildcat banking era.
Making use of stablecoins is an extension of MoneyGram’s research of crypto services. The company started accepting bitcoin at its various locations in early May of this year, soon after making official a collaboration with crypto exchange Coinme.
Nathan recently got into crypto by investing in stablecoins/altcoins using an algorithmic trading strategy. Shortly thereafter, he began writing about blockchain technology and all things crypto. He has become involved in a number of crypto-related projects and continues to be passionate about all things crypto.