MoneyGram has unveiled a new partnership with the Stellar Development Foundation, the foundation behind Stellar (XLM). The decision of the US money transfer company to switch the XRP token of the American blockchain company Ripple to XLM in its operations has triggered a rally in the price of the latter coin.
At 10:25 UTC, the price of XLM increased by 13% over a 24-hour period, indicating the boost that the announcement gave the coin. It is trading at USD 0.35. In addition, the price has increased by 30% over the past week.
“MoneyGram’s network, which integrates with the Stellar blockchain and is facilitated by Circle’s USD Coin (USDC), allows consumers using USDC to receive cash funding and withdrawal in local currency, as well as near-instant backend settlement capabilities,” MoneyGram said in a statement.
The partnership is scheduled to go live in selected markets this year, with a further international rollout planned for 2022.
The company says that for the first time, settlement with MoneyGram will occur in near real-time using USDC, which will allow accelerated collection of funds, but also improve efficiency and reduce risk.
“As crypto and digital currencies grow in importance, we are particularly optimistic about the potential of stablecoins as a method to streamline cross-border payments,” said Alex Holmes, Chairman and CEO of MoneyGram.
Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, commented on the collaboration saying”A new segment of cash users will be able to convert their cash into USDC, giving them access to fast and affordable digital asset services that may have been previously unattainable.”
The latest move comes after the conclusion of MoneyGram’s difficult relationship with Ripple and its coin. Last March, the blockchain business announced that its partnership with MoneyGram had ended (for now).
Meanwhile, XRP is up nearly 5% today and is currently trading at just above USD 1. It has estimated 16.5% In the last week.