MoneyGram, one of the largest money transfer providers in the world, is partnering with Stellar for a new service that would allow users to send and convert stablecoins into fiat money. Although no timetable was revealed, the new project will reportedly be based on the Stellar blockchain, Bloomberg has learned.
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MoneyGram CEO Alex Holmes said the company believes that cryptocurrencies are here to stay despite notorious volatility and sell-offs as the market still lacks compatibility with fiat money despite its $1.2 trillion scale:
“The world of crypto and the world of fiat are not really compatible today. We’re trying to be a bridge from the crypto world to the fiat world.”
While no other details were revealed by Holmes, he noted that USD coin (USDC) will be the first stablecoin available on the platform. It is unclear if MoneyGram plans to expand support for other stablecoins (e.g. USDT or BUSD).
MoneyGram first announced plans for stablecoin remittance in October 2021. The company said back then that United Texas Bank will act as a clearing bank. Before stablecoins, MoneyGram was processing cross-border payments through On-Demand Liquidity (ODL) using the XRP token.
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