Money transfer service MoneyGram has announced it has teamed up with the Stellar Development Foundation to provide local currency payments via the stablecoin USD Coin (USDC). According to the announcement:
"MoneyGram's network, integrated with the Stellar blockchain and facilitated through Circle's USD Coin (USDC), will enable cash funding and payout in local currency for consumers using USDC, as well as near-instant backend settlement capabilities."
According to the press release shared by the company. United Texas Bank will act as a clearing bank between Circle and MoneyGram.
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The joint solution is expected to launch in selected markets beginning in 2021. International launch is planned for 2022.
Alex Holmes, chairman of the board of MoneyGram, said:
"As crypto and digital currencies rise in prominence, we're especially optimistic about the potential of stablecoins as a method to streamline cross-border payments."
Notably, MoneyGram has been processing cross-border payments through On-Demand Liquidity (ODL) using the XRP token since 2019.
In November 2019, Ripple acquired a stake in MoneyGram for $50 million.
In March, Ripple announced it planned to end its partnership with MoneyGram.