MoneyGram Partners Stellar To Use USDC Stablecoin For Money Transfer
MoneyGram International is partnering Stellar Development Foundation to use its public blockchain that allows money to be tokenized and transferred anywhere in the world. MoneyGram’s network will be integrated with the Stellar blockchain to enable cash funding and payout in local currency for consumers by using Circle’s USD Coin (USDC) for near-instant backend settlement.
United Texas Bank will serve as a settlement bank between Circle and MoneyGram. This will be first of a kind direct USDC to US dollar settlement process within a bank regulatory framework. The service is scheduled to go live in select markets in 2021, with further international rollout planned in 2022.
All digital wallets connected to the Stellar network will be able to access MoneyGram’s global retail platform, which will provide a bridge between digital assets and local currencies for consumers.
This facility will enable more consumers to participate in the digital economy with the ability to seamlessly convert USDC to cash, or cash to USDC and increase the utility and liquidity of digital assets.
This partnership also revolutionizes the settlement process by enabling an accelerated collection of funds, improving efficiency and reducing risk by the use of blockchain technology.
MoneyGram was the first money transfer company to utilize blockchain technology as part of its foreign exchange trading and has since launched several innovative partnerships that provide broad consumer access to digital currencies.
The combination of the reach of MoneyGram’s services as well as the speed and low cost of transactions on Stellar will enable new segment of cash users to convert their cash into and out of USDC and give them access to fast and affordable digital asset services that may have previously been out of their reach.
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