MoneyGram and Stellar team on instant crypto-to-cash transfers

The agreement will provide digital wallets connected to the Stellar network with access to MoneyGram’s retail network, enabling cash funding and payout in local currency for consumers using USDC, as well as near-instant backend settlement capabilities.

“At MoneyGram, one of our top strategic priorities is to pioneer cross-border payment innovation and blockchain-enabled settlement,” says Alex Holmes, MoneyGram chairman and CEO. “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. Given our expertise in global payments, blockchain, and compliance, we are extremely well-positioned to continue to be the leader in building bridges to connect digital currencies with local fiat currencies.”

United Texas Bank will serve as a settlement bank between Circle and MoneyGram.

Scott Beck, director of United Texas Bank, states: “We are pleased to play an integral part in completing the settlement process by working on this first of a kind direct USDC to USD settlement within a bank regulatory framework.”

The partnership is scheduled to go live in select markets in 2021, with further international rollout planned in 2022.

The deal with Stellar comes after MoneyGram terminated an earlier partnership with Ripple over a regulatory dust up with the Securities and Exchange Commission.