MoneyGram officially cooperates with Stellar Foundation, XLM price increases by 12%
International money transfer service MoneyGram has no intention of stopping blockchain exploration after splitting from Ripple. The company just announced a new partnership with the Stellar Foundation on October 6, 2021 to develop a payment bridge that streamlines remittances and enables near-instant payments in USDC, a dollar-pegged stablecoin from Circle.
Notify underscores Moneygram’s innovative vision which ensures that the partnership “will revolutionize payment flows”.
Moneygram continues to research blockchain
Moneygram will use a version of USDC that runs on the Stellar network to make transactions more efficient. United Texas Bank will act as the clearing house between Circle (issuer of USDC) and MoneyGram (provider of remittance services).
This will be Money’s second attempt to use blockchain to improve its services. Stellar is a direct competitor of Ripple, born after Jed McCaleb – the co-founder of Ripple – split from the company and devoted himself entirely to developing his own project.
XLM, Stellar’s native token, took a huge leap and ended the day with a gain of over 12%, which was also fueled by Bitcoin’s phenomenal performance that day. XLM opened at $ 0.31 and closed at $ 0.357, a daily high of $ 0.37.
Price for Stellar Lumens (XLM). Source: Tradingview
Meanwhile, Moneygram stock is more cautious. The company couldn’t stop its free fall from its high for the year in July and only rebounded 0.9% with no apparent reversal – from $ 7.6 to $ 7.69.
Moneygram share price. Source: Tradingview
Goodbye Ripple, hello Stellar
This partnership is a clear signal that Moneygram wants to move forward and eliminate the bad experiences with Ripple.
In 2019, Moneygram and Ripple announced a partnership in which remittance giant will use RippleNet as part of a cross-border payment process, also receive financial incentives in the form of XRP, and at the same time Ripple will hold a stake in the company.
The partnership lasted nearly two years and ended in March 2021 after the SEC officially filed a lawsuit against Ripple accusing it of using XRP as a way to offer unregistered securities.
In an official statement, Ripple assured that the separation was amicable. Both parties have pledged to review their relationship in the future after the dispute with the SEC ends.
But now that Stellar is in the game, Moneygram might not want to wait for Ripple to become a blockchain-friendly company.
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According to Cryptopotato