- The Stellar Development Foundation (SDF) has made a strategic investment in MoneyGram, a major American money transfer company.
- This investment is not from Stellar’s Enterprise Fund, but from the SDF’s own activities.
- The partnership between SDF and MoneyGram, which began in 2021, allows users to make instant payments with the stablecoin USD Coin (USDC).
The Stellar Development Foundation (SDF) has strategically invested in MoneyGram, a leading money transfer company in the US. This move is not funded by Stellar’s Enterprise Fund, but rather from the SDF’s own operations. The collaboration between SDF and MoneyGram, which commenced in 2021, enables users to execute instant transactions using the stablecoin USD Coin (USDC).
Stellar Development Foundation Invests in MoneyGram
The Stellar Development Foundation (SDF), responsible for the development of the cryptocurrency Stellar (XLM), has announced a strategic investment in MoneyGram, a prominent money transfer company in the United States. This investment is unique as it is not sourced from Stellar’s Enterprise Fund, which is typically used for investing in startups, but from the SDF’s own operational funds. The SDF has become a minority shareholder in MoneyGram as a result of a private transaction with US investment firm Madison Dearborn Partners.
Significance of the Investment
According to Denelle Dixon, CEO and Executive Director of the SDF, this investment will enable the SDF to support MoneyGram’s efforts to provide services related to money transfers and fund management worldwide, particularly in the expansion of its digital business and exploration of blockchain technology. MoneyGram’s demonstrated commitment to becoming a leader in the fintech field by advancing its digital business is also of significant importance. Furthermore, Dixon will join MoneyGram’s board of directors as part of this investment, although the investment amount has not been disclosed.
Partnership Since 2021
The SDF and MoneyGram have been collaborating since 2021. With the assistance of the SDF, MoneyGram has enabled its users to make instant payments using the stablecoin USD Coin (USDC). By processing USDC transactions on the Stellar blockchain, users are provided with the ability to instantly transact between fiat currencies and USDC.
Conclusion
MoneyGram has been actively venturing into the cryptocurrency business. In November 2022, it partnered with cryptocurrency ATM operator Coinme to introduce Bitcoin (BTC) and Ethereum (ETH) trading features to its money transfer app. Recently, US fintech company Changera introduced a service made possible by MoneyGram’s collaboration with Stellar. By using Stellar’s blockchain, they have initiated deposit services in Canada, Senegal, Uganda, and Kenya, and withdrawal services using USDC in over 180 countries where MoneyGram is available. Changera is particularly focused on promoting financial inclusion in areas of the African continent where financial services are not readily available, and providing equal access to the digital economy.
