MoneyGram To Open Transfer Platform With Stellar, Eyes Wallet Deal In El Salvador

MoneyGram International, one of the world’s largest cross-border transfer services, is partnering with the Stellar blockchain to create a stablecoin-based platform for money transfers. 

iexclusivenews reports that the new service will allow Stellar wallet users to send Circle’s USD Coin (USDC) to recipients. Who will be able to cash them out for fiat currency through the MoneyGram network.

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

What You Need To Know 

This online news outlet understands that MoneyGram is also in talks with third-party companies in El Salvador.

To provide digital wallets in addition to the government-backed Chivo wallets. Which were launched last year when the country made Bitcoin (BTC) legal cash.

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MoneyGram would be able to compete for BTC transfers if it struck an agreement with one of these companies.

“If a country like El Salvador is going to make Bitcoin seamless with US dollars in country, I think that consumers, through MoneyGram, should be able to transfer Bitcoin to El Salvador or transfer dollars and convert them to Bitcoin,” Holmes told Bloomberg. “If that’s where the world is going, let’s participate in that world and let’s see how we can help fulfill that opportunity.”

Ripple Labs, which earlier owned a major portion of MoneyGram’s equity, has a previous agreement with the company. Ripple and

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MoneyGram broke up in March 2021, shortly after the Securities and Exchange Commission of the United States filed a lawsuit against Ripple.

In March 2021, a class-action lawsuit was filed against MoneyGram as a result of their engagement with Ripple.

Meanwhile, iexclusivenews Nigeria reports that MoneyGram and Stellar began collaborating in October 2021. And a trial service was launched in November. Earlier that summer, there were rumors that Stellar was interested in buying MoneyGram.