Stellar (XLM) And MoneyGram Partner To Enable USDC Remittances

May 31, 2022 11:43 am Comments

As the crypto regulatory landscape remains to be an uncertain factor for investors, some are starting to see the possible benefits if regulations are able to strike a fine balance that allows for innovation and growth.

Stellar’s XLM was able to react positively this past weekend as it was reported that the price of the digital asset was able to rally roughly 6.77% just on Sunday.

The recent rally came at the same time as a broader recovery in the overall crypto markets despite the recent collapse of the UST stable coin.

Other reasons that may have contributed to XLM’s recent rally include its recent partnership with MoneyGram to support stable coin remittances in USDC.

Yahoo reports:

MoneyGram CEO Alex Holmes reportedly said,

“The world of crypto and the world of fiat are not really compatible today. We’re trying to be a bridge from the crypto world to the fiat world.”

Holmes when on to say,

“Users with digital wallets on the Stellar blockchain will be able to convert their holdings into Circle Internet Financial’s USDC stablecoin, which can then be cashed out through MoneyGram’s network.”

The latest news comes in the wake of the TerraUSD (UST) collapse and the brief de-pegging of Tether (USDT) from the dollar.

Unlike UST, USD Coin (USDC) is fully backed by cash and short-dated US government obligations, ensuring a 1:1 peg with the US dollar.

Continued growth of this new remittance with a viable stable coin could mean a very positive outlook for the Stellar blockchain.

Essentially, it would become a easy and possibly mainstream way for users to convert stable coins into fiat currency and vice versa as well.

MoneyGram’s existing network is also extremely large and established which gives a solid foundation for XLM to gain more awareness and adoption.

So far, the remittance fees are extremely competitive which the CEO believes will incentivize future growth when comparing this new service to existing services on the market today.

FXEmpire reports:

At the time of writing, XLM was up 5.04% to $0.1375.

A bullish morning saw XLM rally to a morning high of $0.1417 before easing back to sub-$0.14 levels.

XLM broke through the First Major Resistance Level at $0.1341 and the Second Major Resistance Level at $0.1373.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. At the time of writing, XLM sits above the 100-day EMA, currently at $0.1337.

This morning, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA; XLM positive.

With a hopeful recovery soon underway and this new launch, XLM could be breaking its 8 week bearish momentum and start a new bullish rally.

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