Traditional payment giant MoneyGram announced on Wednesday that it is working with the Stellar Network to facilitate blockchain-based payments. The network will create instant money transfers through famous Circle’s stablecoin- USDC.
MoneyGram and Stellar are expected to begin the pilot on this collaboration during the last quarter of this year. The official rollout involving a gradual ledger-based stablecoin bridge is due in 2022. This project’s success will help narrow the gap between the crypto industry and local currencies to the over 150 million customers in Moneygram.
This venture is not a new attempt in the industry. In fact, should this new venture succeed, it will be a slap to Ripple, which had set the grounds rolling with Moneygram until its recent lawsuit.
CEO and Executive Director of the Stellar Development Foundation, Denelle Dixon, is quoted saying their goal is to go as big as they can. According to her, working with MoneyGram will make it possible for its customers to have on and off ramps everywhere throughout the vast clientele MoneyGram has. Exchanging fiat-to-crypto and vice versa has never been as transformational.
MoneyGram’s Chairman and CEO, Alex Holmes, believes that collaboration with Stellar is different from what they had with Ripple. Stellar, as he recounts, is an entirely different animal from Ripple, which had to rely on the crypto firm’s on-demand liquidity for FX trading.
On the other hand, working with Stellar covers a much broader scope because it directly touches on consumer payments. Also, Moneygram’s collaboration with Ripple posed a more significant volatility challenge because they traded in XRPs.
Previously, banks have remained edgy in getting accustomed to cryptocurrencies. However, the United Texas Bank stands to gain massive benefits from being the settlement bank between MoneyGram and the Stellar Development Foundation.
Holmes applauds the State of Texas and equally the United Texas Bank for constant efforts in being progressive on crypto.
In hindsight, Coindesk reported a subpoena from the SEC this week. Details are yet to be divulged on its contents, but crypto regulations seem to have caught with the market.
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