MoneyGram, the financial services company, 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.
It has been reported that 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.
However, United Texas Bank will act as the settlement bank to complete the process within the regulatory framework.
Alex Holmes, the chairman and CEO of MoneyGram, said:
“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.”
The report said that the partnership is expected to launch at the end of 2021 in select jurisdictions, with an expanded international rollout planned in 2022.
Likewise, Denelle Dixon, the 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.”
Thus, MoneyGram’s integration with Stellar comes just months after the firm moved to allow customers to withdraw crypto assets for cash through its point-of-sale outlets in the United States. The service was rolled out in partnership with Bitcoin ATM and crypto exchange operator Coinme.