Money transfer company MoneyGram plans to launch a service that will allow customers to send money to other countries using stablecoins.
The company entered into a partnership with Stellar Development, which developed the Stellar (XLM) blockchain and a decentralized protocol focused on cross-border transfers, Bloomberg reported. The new service will allow users to convert their stablecoins into fiat currencies where MoneyGram operates.
According to Alex Holmes, CEO of the company, today the world of cryptocurrencies and the world of fiat money are incompatible, but his company wants to try to become a bridge between them. Despite all the uncertainty currently present in the digital asset markets, Holmes says, MoneyGram believes in the future of cryptocurrencies:
“Despite the strong volatility and the departure of some traders, I think that cryptocurrencies will stay with us for a long time. It is very important to accept them and promote implementation.”
For the first time about the partnership between MoneyGram and Stellar became known in October last year. Prior to working with Stellar, the company collaborated with the Ripple Labs money transfer network. However, after the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, accusing the company of illegally selling XPR tokens, MoneyGram was also sued. After that, the company stopped working with Ripple.
Stellar and MoneyGram previously announced a partnership with global operating investor Techstars to support Latin American fintech startups.
