MoneyGram Launches USDC Settlement Using Stellar Blockchain
In a recent development, MoneyGram settled its USDC issue while bringing the stellar Blockchain into the play. This partnership will enable MoneyGram customers to fund and withdraw amounts directly from their account and using USDC stablecoins at physical branches of the money gram.
One of the world’s biggest financial service provider MoneyGram joined hands with the Stellar Blockchain of Stellar Development Foundation. This will allow customers to transfer money directly from their accounts while using one of the popular digital token USD back stablecoin.
A recent news has revealed that MoneyGram has allowed to accept all the crypto tokens associated with the Stellar Blockchain to solve the worldwide retail payment issues. The goal behind this decision is to make crypto easy and accessible for the masses. People can now easily convert fiat into crypto and crypto in exchange for fiat money.
MoneyGram will also enable “near-instant backend settlement”, account funding, and local fiat withdrawals using the USDC stable token. As of this writing, its has been agreed that the United Texas Bank will work as the settlement bank to take care of all the regulatory matters.
Alex Holmes, the CEO of Money Gram said that as the popularity of digital tokens is mounting it is necessary that regulatory authorities cooperate with the institutional investors entering the crypto market. Moreover, the stable coins are best possible option available in terms of streamline cross-border payments,” he further added.
However, as the far the implication of this new strategic partnership is concerned, the partnership will officially begin by the end of 2021. At first it would be implemented in selected areas. However, the international expansion of this plan would happen within the mid of the financial year 2022.
Denelle Dixon, the CEO of Stellar Development Foundation, stated:
“A wide range of user would be able to convert their cash into USDC and USDC into cash. This will provide the users with the opportunity to have access to one the world’s fastest digital banking networks.”
MoneyGram is not new when it comes to operating in the crypto landscape. The company has previously collaborated with Ripple technologies on cross-border payments and foreign exchange settlements with digital assets.
However, the deal quickly went off the plan as the US security and exchange commission filed the lawsuit against the Ripple. As the result Moneygram withdrew their support from Ripple’s platform. However, this time around the whole scenario looks different. Its seems that MoneyGram and Stellar Technologies have agreed to a strategic plan to change the dynamics of cryptocurrency trading in the U.S. It would be a win-win situation for both financial institutions and people.