MoneyGram launches USDC settlement using the Stellar blockchain

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.

Related: Biden admin weighing bank-like regulation for stablecoin issuers

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.

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MoneyGram Slapped With Class-Action Lawsuit For Issuing Misleading Statements Concerning XRP

More Woes For XRP As MoneyGram Suspends Trading On Ripple's Platform

The fiasco surrounding the legal status of Ripple’s cryptocurrency XRP continues to unfold as a new lawsuit filed against MoneyGram puts pressure on the case. MoneyGram, presently the world’s second-biggest money transfer service provider, is being sued for allegedly making false statements regarding its relationship with Ripple and also for failing to reveal that XRP […]

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More Woes For XRP As MoneyGram Suspends Trading On Ripple’s Platform

More Woes For XRP As MoneyGram Suspends Trading On Ripple's Platform

The United States Securities and Exchange Commission has a long and complex history with the cryptocurrency industry. This has included the prosecution of fraudulent Initial Coin Offerings during the ICO boom a few years ago, the back and forth of the Bitcoin ETF, and the issues surrounding the introduction of crypto-related regulation. The latest of […]

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Ripple has sold $15M of its stock in MoneyGram

Ripple’s partnership with MoneyGram may not be as warm as it once was, but it’s paying off.

Ripple Labs has sold a huge chunk of its 2019 investment in MoneyGram. 

Per a Friday night filing with the Securities and Exchange Commission on Friday night, from Nov. 27 through Dec. 4, Ripple Labs managed to sell 2,264,113 shares of MoneyGram (MGI). The tech firm netted a total of $15,303,792.60 from the sales.

MoneyGram’s stock value has soared in recent months, from $2.94 on Oct. 1 to $8.53 on Nov. 23. In no small part thanks to news of Ripple’s sell-off, MGI has slipped back down to $6.54 as of publication.

Despite a flurry of announcements of expanding integration between the remittances firm and Ripple throughout 2019, the relationship between the two companies seemed to have settled earlier this year. However, a Ripple spokesperson told Cointelegraph:

“Ripple is a proud partner in MoneyGram’s digital growth transformation. This is purely a judicious financial decision to realize some gains on Ripple’s MGI investment and is in no way a reflection of the current state of our partnership.”

Ripple initially announced major investment into MoneyGram last June, which led to the latter using the former’s xRapid technology to speed up payments. XRapid uses XRP to facilitate liquidity.

Ripple, which still owns 48 billion XRP, has spent the last several years playing down its relationship to the token, though recent price surges may be changing that.

Update: Dec. 4, 20:30 EST: Cointelegraph has updated this article to include a statement from Ripple.

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Ripple Is Selling 33% of Its Stake in Moneygram

Ripple Is Selling 33% of Its Stake in MoneygramRipple Labs Inc. is selling 4 million of its shares in Moneygram, or about a third of its total shareholding in the company. The decision seems in part to be motivated by the surging Moneygram share price and Ripple’s desire to cash out after buying the shares at a premium of $4.10 in 2019. At […]

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