MoneyGram Launches Crypto-to-Fiat Service on Stellar Blockchain

MoneyGram has announced the roll-out of a crypto-to-cash service in partnership with the Stellar Development Foundation (SDF), a non-profit that develops and supports the Stellar blockchain.

By Anna B Kiwanuka

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Global leader in the evolution of digital peer-to-peer (P2P) payments, MoneyGram, and nonprofit organization that supports the Stellar network, Stellar Development Foundation (SDF) have recently announced the initial rollout of an on-and-off-ramp service for crypto wallets on the Stellar network.

It will be initially rolled out in a few select markets including Canada, Kenya, the Philippines, and the US by the end of June, and is expected to launch in more countries by the end of the year.

The purpose of this is to increase the utility of digital assets by creating a bridge between cash and cryptocurrencies. With the support of Circle’s USDC stablecoin, one of the world’s fastest-growing dollar digital currencies, funds on digital wallets will be able to go from fiat to cryptocurrency to fiat again without the need for a bank account or credit card. This enables an accelerated collection of funds, improving efficiencies and reducing risks.

More custodial and non-custodial wallets will be added to the service in the near future, but for the time being, Stellar-based crypto wallets Vibrant and Lobstr can use it. To encourage adoption, MoneyGram is offering the service for free for the first 12 months.

“We’re thrilled to work alongside the Stellar Development Foundation on this important initiative to bring more opportunities to consumers around the world by making the worlds of crypto and local fiat currency compatible,” said Alex Holmes, MoneyGram Chairman, and CEO.

 “At MoneyGram, we’re on a mission to deliver innovative financial solutions that connect the world’s communities, and the initial launch of this service is another important milestone on our journey. It’s especially exciting to launch this service ahead of schedule due to the strong collaboration of our technology teams, and we look forward to further collaboration with SDF as we work on uncovering new ways to utilize the blockchain to further streamline cross-border payments.” He added.

The partnership focuses on delivering a service that revolutionizes the settlement process.

“A much-needed solution to the cash-to-crypto on/off-ramp problem is here,” said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation. 

He added saying, “Today, almost 2 billion people rely on cash for their livelihood, with no options to access the digital economy. At the same time, a persistent pain point for crypto-native users is off-ramping cryptocurrency quickly and reliably. The groundbreaking nature of this service is how it solves problems for a range of users with varying needs around the world.”

This service also creates a developer platform that will allow more businesses within the Stellar ecosystem and beyond, including wallets and service providers, to expand the functionality and reach of MoneyGram’s integration with the Stellar network. For example, Elliptic, a global leader in crypto asset risk management, will provide MoneyGram with robust blockchain analytics solutions, and Wyre, a leading provider of blockchain payments APIs, will help other wallets, starting with Airtm, a digital dollar account, integrate with the MoneyGram service.

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