Ripple Competitor and MoneyGram Roll Out Zero-Fee Money Transfer Service Using USDC Stablecoin

June 11, 2022 The Daily Hodl

MoneyGram’s USDC transfer service launches in several countries

June 10, 2022 Coin Telegraph

Circle

The payment service, which is powered by the Stellar blockchain, will enable USDC settlement with MoneyGram in “near-real-time.”

Cross-border transfer service MoneyGram officially launched its stablecoin-powered payment channel on Friday, giving users the ability to send USD Coin (USDC) payments worldwide that can be withdrawn as cash by recipients.

The service is being rolled out across several key remittance markets, including Canada, the United States, Kenya and the Philippines, Circle and MoneyGram announced Friday. Global cash-out functionality will be available by the end of June. To encourage adoption, the USDC transfer service will carry zero fees for the first 12 months.

As Cointelegraph reported, MoneyGram’s new transfer service was built on the Stellar (XLM) blockchain and allows Stellar wallet users to send USDC to recipients around the world. The service is intended to bridge the gap between digital assets and physical cash currency, as well as demonstrate the utility of crypto payments.

It's official: @DenelleDixon announces the launch of @MoneyGram and @StellarOrg's crypto-to-cash service. pic.twitter.com/vzAzlBNDxD
— Stellar (@StellarOrg) June 10, 2022

Stellar Development Foundation CEO Denelle Dixon said the new transfer channel will help the world’s unbanked population access the digital economy for the first time. While estimates vary, the World Bank says that roughly 1.7 billion adults are unbanked, which means they lack access to an account at a financial institution. Whether through decentralized finance, central bank digital currencies or crypto-powered transfer and settlement services, blockchain technology has been posited as a potential solution to financial exclusion.

In related news, Circle announced Friday that it had a definitive agreement to acquire crypto infrastructure platform CYBAVO, which it believes will further pave the way for USDC adoption.

Circle’s USDC is the second-largest stablecoin by market capitalization and maintains a one-for-one dollar peg backed by cash and short-dated U.S. Treasuries.

MoneyGram to open transfer platform with Stellar, eyes wallet deal in El Salvador

May 30, 2022 Coin Telegraph

Coin Telegraph

MoneyGram CEO Alex Holmes said the international remittances stalwart wants to be a bridge between the crypto and fiat worlds.

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. 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.

Holmes also said MoneyGram is in talks with third-party companies that provide digital wallets in El Salvador alongside the government-backed Chivo wallets that were introduced when the country made Bitcoin (BTC) legal tender last year. Through a deal with one of those companies, MoneyGram would be able to compete for BTC transfers as well.

“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.”

MoneyGram had a previous deal with Ripple Labs, which once owned a large package of its stock. Ripple and MoneyGram severed their relationship in March 2021 shortly after the United States Securities and Exchange Commission filed a lawsuit against Ripple. MoneyGram’s involvement with Ripple resulted in a class-action suit against the payment service in March 2021.

MoneyGram and Stellar began working together in October 2021 and launched a pilot program in November. Earlier that summer reports circulated that Stellar was interested in a takeover of MoneyGram.

Remittance Giant MoneyGram Prepares Imminent Launch of New Crypto Service With XRP Rival Stellar Lunes: Report

May 30, 2022 The Daily Hodl

Moneygram Invests in Crypto ATM Operator — CEO Bullish on Opportunities Crypto Offers

January 6, 2022 Bitcoin.com

Moneygram buys 4% stake in crypto ATM operator Coinme

January 5, 2022 Coin Telegraph

ATM

The investment follows a May 2021 partnership between the two firms aimed at expanding access to crypto-fiat exchanges.

Money transmission network MoneyGram now has a minority investment in crypto ATM operator Coinme following a Series A funding round.

In a Wednesday announcement, MoneyGram said it had purchased a roughly 4% ownership stake in Coinme — likely more than $764,000, given its valuation of $19.1 million in June — as part of a strategic investment in the crypto company. The investment follows a May 2021 partnership between the two firms aimed at expanding access to crypto-fiat exchanges.

"We continue to be bullish on the vast opportunities that exist in the ever-growing world of cryptocurrency and our ability to operate as a compliant bridge to connect digital assets to local fiat currency,” said MoneyGram CEO Alex Holmes. “Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies.”

Currently, U.S.-based MoneyGram users are able to exchange their Bitcoin (BTC) and crypto holdings for cash at point-of-sale outlets. Coinme’s website reports more than 23,000 ATM locations in the United States, including MoneyGram and Coinstar.

While MoneyGram seemingly winds up its partnership with Coinme — currently only operating in the United States — it scaled back its collaboration with blockchain-based payments firm Ripple Labs in 2021. The two firms inked a strategic partnership agreement in 2019, processing billions of dollars through Ripple’s RippleNet and On-Demand Liquidity services. However, MoneyGram suspended the partnership in February 2021 following the U.S. Securities and Exchange Commission filing a complaint against Ripple, alleging securities violations.

At the time of publication, shares of MoneyGram stock (MGI) are trading for $7.55, having fallen roughly 2.5% in the last 24 hours.

MoneyGram Launches New Partnership With This Crypto As Ripple Battles Through SEC Lawsuit

October 8, 2021 The Daily Hodl

Moneygram Partners With Stellar Development Foundation to Allow Users to Make Remittances With USD Coin

October 8, 2021 Bitcoin.com

Stellar Soars on MoneyGram Partnership News

October 7, 2021 The Crypto Briefing

MoneyGram launches USDC settlement using the Stellar blockchain

October 7, 2021 Coin Telegraph

Assets

The partnership will enable MoneyGram customers to fund and withdraw from their accounts using the USDC stablecoin at physical branches.

Financial services company, MoneyGram International, has partnered with the Stellar Development Foundation to enable consumers to send money using Circle’s popular stablecoin, USD Coin (USDC) and convert directly to and from fiat.

Per a 6 Oct. announcement, MoneyGram has integrated support allowing crypto wallets connected to the Stellar Network to access its global retail platform. Working alongside Circle, MoneyGram will also enable “near-instant backend settlement”, account funding, and local fiat withdrawals using the USDC stable token.

United Texas Bank will act as the settlement bank to complete the process within the regulatory framework.

"As crypto and digital currencies rise in prominence, we're especially optimistic about the potential of stablecoins as a method to streamline cross-border payments.” said Alex Holmes, MoneyGram Chairman and CEO.

The partnership is expected to launch at the end of 2021 in select jurisdictions, with an expanded international rollout planned in 2022. Denelle Dixon, CEO and executive director of the Stellar Development Foundation, stated:

"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.”

MoneyGram's integration with Stellar comes just months after the firm moved to allow customers to withdraw crypto assets for cash via its point-of-sale outlets in the U.S. The service was rolled out in partnership with Bitcoin ATM and crypto exchange operator, Coinme Inc.

MoneyGram is no stranger to blockchain, having partnered with distributed ledger technology Ripple in June 2019 to collaborate on cross-border payments and foreign exchange settlements with digital assets.

However, the deal quickly went south, due to the uncertainty concerning U.S. Securities and Exchange Commission lawsuit targeting Ripple. MoneyGram suspended support for Ripple's platform during the first quarter of 2021.

Stellar was launched by Ripple co-founder Jed McCaleb following his tumultuous departure from the project in 2014.

Circle published, on 4 Oct., filings revealing it is cooperating with a subpoena from the SEC that it received in July.

MoneyGram

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