Stellar Invests in MoneyGram, Secures Board Seat for Blockchain Evolution
- Stellar Development Foundation invests in MoneyGram, enhancing their existing commercial partnership.
- The investment stems from SDF’s cash treasury, marking a novel use of resources.
- Investment grants SDF a board seat, driving MoneyGram’s blockchain-powered digital growth.
The Stellar Development Foundation (SDF) has announced a significant strategic investment in MoneyGram.
This move marks a pivotal step forward in the relationship between the two entities, building upon their previous commercial collaboration.
Two years ago, MoneyGram and SDF entered into a commercial partnership, aiming to streamline cryptocurrency payments and introduce a cash-to-crypto service. This prior collaboration laid the groundwork for the current investment, showcasing the alignment of their visions in the ever-evolving financial landscape.
SDF’s involvement in MoneyGram’s trajectory intensified during MoneyGram’s go-private transaction with Madison Dearborn Partners (MDP). As a result of this transaction, SDF became a minority investor in MoneyGram (MGI). The investment was drawn from SDF’s own cash treasury, earmarked to support its operational endeavors. Notably, this investment diverged from the Enterprise Fund, which primarily focuses on startups and early-stage companies. Denelle Dixon, SDF CEO and Executive Director, emphasized that this move represented a novel use of SDF’s treasury resources.
This investment not only provides SDF with a seat on MoneyGram’s Board of Directors but also aligns with MoneyGram’s ambitions for digital business expansion. By delving into blockchain technology, MoneyGram aims to fortify its digital presence and explore novel avenues for growth.
Although the exact investment amount remains undisclosed, Dixon highlighted the strategic significance of forging strong partnerships in the payments sector. She reiterated SDF’s mission of fostering accessible financial services, stressing that partnerships with key players like MoneyGram play a crucial role in achieving this goal.
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