The deal teams MoneyGram with the direct competitor of former partner Ripple, which invested heavily in the international payments firm when it was producing steep losses.
Saying the partnership “revolutionizes the settlement process” — which can take days to finalize — MoneyGram CEO Alex Holmes added:
“One of our top strategic priorities is to pioneer cross-border payment innovation and blockchain-enabled settlement ... Given our expertise in global payments, blockchain, and compliance, we are extremely well-positioned to continue to be the leader in building bridges to connect digital currencies with local fiat currencies."
According to Denelle Dixon, CEO and executive director of the Stellar Development Foundation, the partnership will create “more equitable financial access.” She said:
“A shining example of how blockchain technology and stablecoins bring new opportunities to global customers and enhance the existing financial system. Thanks to the reach of MoneyGram's services and the speed and low cost of transactions on Stellar, a new segment of cash users will be able to convert their cash into and out of USDC, giving them access to fast and affordable digital asset services that may have previously been out of reach.”
Barely a Ripple
Stellar competitor Ripple will be unamused by the announcement.
Stellar founder Jed McCaleb was also one of Ripple’s founders, leaving the company in 2013 with billions worth of XRP, which he has been selling regularly. The next year, he founded the open-source Stellar protocol, which also focuses on cross-border payments.