MoneyGram Partners With Stellar (XLM) To Launch USDC Transfer Services

June 12, 2022 1:32 pm

MoneyGram is considered one of the largest cross border payment services in the world right now and is used globally in many regions.

The company has now revealed that they will now support the transfer of USDC stable coins through its platform for cross border payments.

This marks a new milestone for how stable coins are used and also marks a new achievement for the Stellar blockchain as Stellar (XLM) was chosen to to be the blockchain on where this solution would be built on top of.

The service will be available for multiple regions including the United States, Canada, Kenya, and the Philippines which will certainly boost adoption for Stellar.

Securities.io reports:

This new transfer service was developed on the Stellar (XLM) blockchain. This service facilitates Stellar wallet users by enabling them to send USDC to recipients globally. The service plans to bridge the gap between the digital asset sector and physical cash. It also plans to promote the utility of cryptocurrency payments.

The CEO of the Stellar Development Foundation, Denelle Dixon, said that this move would foster financial inclusion. It would support the unbanked population globally by allowing them to access the digital economy for the first time.

The estimates about the world’s population that is still unbanked have varied. World Bank says that around 1.7 billion adults globally remain unbanked. This population does not have access to an account at any financial institution.

Blockchain technology has fostered financial inclusion by decentralizing the financial sector. Blockchain products like decentralized finance (DeFi), central bank digital currencies (CBDCs), and transfer & settlement services have become popular financial tools among the unbanked population.

Stellar being able to support USDC transfers is also quite a big deal in itself as Circle’s stable coin USDC is currently the second largest stable coin when measured by market cap.

Circle ensures the value of USDC been having an actual dollar in reserve for each stable coin which makes it resistant to a collapse unlike the UST stable coin.

As popularity for USDC continues to grow, crypto projects like Stellar which are able to support solutions involving it will likely benefit from the growth.

With this new partnership between Stellar (XLM) and MoneyGram, this may entice other popular cross-border digital payment platforms to also do the same in the future.

CoinTelegraph reports:

As Cointelegraph reported, MoneyGram’s new transfer service was built on the Stellar (XLM) blockchain and allows Stellar wallet users to send USDC to recipients around the world.

The service is intended to bridge the gap between digital assets and physical cash currency, as well as demonstrate the utility of crypto payments.

Stellar Development Foundation CEO Denelle Dixon said the new transfer channel will help the world’s unbanked population access the digital economy for the first time.

While estimates vary, the World Bank says that roughly 1.7 billion adults are unbanked, which means they lack access to an account at a financial institution.

Whether through decentralized finance, central bank digital currencies or crypto-powered transfer and settlement services, blockchain technology has been posited as a potential solution to financial exclusion.

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