Financial services company MoneyGram International has partnered with the Stellar Development Foundation to enable consumers to send and convert money directly to and from Fiat using Circle’s popular stablecoin, USD Coin (USDC).
According to an announcement on Wednesday, MoneyGram has built-in support that allows crypto wallets connected to the Stellar network to access its global retail platform. Working with Circle, MoneyGram will also enable “almost instant backend settlement”, account funding and local fiat withdrawals with the stable USDC token.
United Texas Bank will act as the settlement bank to complete the process within the regulatory framework.
“As cryptocurrencies and digital currencies grow, we are particularly optimistic about the potential of stablecoins as a way to optimize cross-border payments,” said Alex Holmes, Chairman and CEO of MoneyGram.
The partnership is scheduled to start in selected legal systems at the end of 2021; an expanded international introduction is planned for 2022. Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, stated:
A new segment of cash users will be able to convert their cash to and from USDC, giving them access to fast and affordable digital asset services that may previously have been inaccessible. “
MoneyGram’s integration with Stellar comes just a few months after the company moved, so customers can withdraw crypto assets for cash through their outlets in the United States. The service was launched in collaboration with the Bitcoin ATM and the crypto exchange operator Coinme.
Related: Biden administrator weighs bank-like regulation for stablecoin issuers
MoneyGram is no stranger to blockchain technology and partnered with distributed ledger technology Ripple in June 2019 to partner with digital assets on cross-border payments and foreign exchange settlements.
However, the deal quickly went south due to the uncertainty surrounding the U.S. Securities and Exchange Commission lawsuit against Ripple. MoneyGram ended support for the Ripple platform in the first quarter of 2021.
Stellar was launched by Ripple co-founder Jed McCaleb after his tumultuous exit from the project in 2014.
Circle released filings on Monday indicating that it was cooperating with an SEC subpoena it received in July.