MoneyGram Launches Crypto-to-Cash Service on the Stellar Network
Service not yet available in the UAE
MoneyGram and the Stellar Development Foundation (SDF) announced the initial roll-out of a first-of-its-kind global on/off-ramp service for digital wallets to increase the utility of digital assets by creating a bridge between cash and cryptocurrencies. The service, a result of the partnership between MoneyGram and SDF announced in October 2021, is now available in a number of key remittance markets, including Canada, Kenya, Philippines and the U.S. for the first wave of users, with global cash-out functionality expected to be available by the end of June 2022.
Powered by the Stellar blockchain and Stellar-enabled digital wallets, MoneyGram’s retail agent network, and Circle‘s USD Coin (USDC), a fully-reserved dollar digital currency, the service provides cash users access to the world of cryptocurrency via any participating MoneyGram location. This service is a monumental step towards bridging the gap between physical and digital currencies in a way that has not been done before at scale. As it develops, this solution will pave the way for blockchain technology to further financial inclusion, creating fluidity between cash and crypto so more people can benefit from the digital economy.
To support adoption, MoneyGram will offer this as a zero-fee service for the first 12 months.
“We’re thrilled to work alongside the Stellar Development Foundation on this important initiative to bring more opportunities to consumers around the world by making the worlds of crypto and local fiat currency compatible,” said Alex Holmes, MoneyGram Chairman and CEO. “At MoneyGram, we’re on a mission to deliver innovative financial solutions that connect the world’s communities, and the initial launch of this service is another important milestone on our journey. It’s especially exciting to launch this service ahead of schedule due to the strong collaboration of our technology teams, and we look forward to further collaboration with SDF as we work on uncovering new ways to utilize blockchain to further streamline cross-border payments.”
The partnership focuses on delivering a service that revolutionizes the settlement process. For the first time, settlement with MoneyGram will occur in near-real-time using USDC, one of the world’s fastest growing dollar digital currencies. This enables an accelerated collection of funds, improving efficiencies and reducing risks.
“A much-needed solution to the cash-to-crypto on/off-ramp problem is here,” said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation. “Today, almost 2 billion people rely on cash for their livelihood, with no options to access the digital economy. At the same time, a persistent pain point for crypto-native users is off-ramping cryptocurrency quickly and reliably. The groundbreaking nature of this service is how it solves problems for a range of users with varying needs around the world.”
With the launch of this service, digital wallet users can now move seamlessly from cash to cryptocurrency, to cash again — all without requiring a bank account or credit card. Consumers can now go into a MoneyGram location to either load their digital wallets to access the digital economy, or cash-out their digital currencies to increase the utility of their holdings.