Major money transfer company MoneyGram aims to launch a new service that would enable users to transfer money overseas via stablecoins.
The initiative comes in partnership with the Stellar (XLM) blockchain, a decentralized protocol specializing in cross-border transactions, and it would enable users to convert their stablecoins to hard currency in MoneyGram agent locations, according to a recent report by Bloomberg.
âThe world of crypto and the world of fiat are not really compatible today,â MoneyGram CEO Alex Holmes is quoted as saying. âWeâre trying to be a bridge from the crypto world to the fiat world.â
Prior to working with Stellar, MoneyGram had a partnership with major remittance network Ripple. Signed in 2019, the partnership allowed MoneyGram to use Ripple's product for cross-border payment and foreign exchange settlement.
However, after the SEC filed a complaint against Ripple, alleging that it had been engaged in illegal security offering through sales of XRP, MoneyGram was also slapped with a lawsuit regarding the legal status of the XRP token. Consequently, MoneyGram ended its partnership with Ripple. Still, MoneyGram said its support for Ripple would remain in place.
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