MoneyGram Dumps Ripple, Embraces Stellar for Next-Gen Cross-Border Payments

Big news in the crypto payments world! MoneyGram, a global payments giant, is officially moving on from Ripple and forging a new path with Stellar Development Foundation. Why the shift? And what does it mean for the future of cross-border payments? Let’s dive in.

MoneyGram Chooses Stellar Over Ripple: A New Era for Cross-Border Payments?

In a significant announcement, MoneyGram revealed its exciting new partnership with the Stellar Development Foundation. For those unfamiliar, Stellar is often seen as a competitor to Ripple Labs, both aiming to revolutionize cross-border transactions. MoneyGram’s move to Stellar signals a strong belief in Stellar’s blockchain for speeding up international money transfers.

This partnership isn’t just about switching blockchains; it’s about leveraging the power of stablecoins. MoneyGram’s payments on the Stellar network will utilize USD Coin (USDC), the world’s second-largest stablecoin, issued by Circle. This is a crucial detail, and here’s why:

• Near-Real-Time Settlements: USDC enables settlements on the MoneyGram platform to happen in “near-real-time” for the first time, according to MoneyGram. Imagine sending money across borders and it arriving almost instantly!
• Stable Value: As a stablecoin pegged to the US dollar, USDC offers price stability, reducing the volatility often associated with cryptocurrencies. This is vital for businesses and individuals relying on predictable transaction values.

MoneyGram chairman and CEO, Alex Holmes, expressed his enthusiasm about this development:

“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.”

This statement underscores the growing acceptance and strategic importance of stablecoins in the global financial landscape. And what about Stellar’s native token, XLM?

Currently, Stellar’s native asset, XLM, is showing positive market movement. According to CoinGecko, XLM is trading at $0.349708, marking a 6.5% increase for the day and an impressive 29% jump over the past week. This market reaction could reflect investor optimism about Stellar’s growing adoption and the MoneyGram partnership.

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What Happened to MoneyGram and Ripple?

You might recall MoneyGram’s previous venture with Ripple. Back in June 2019, they teamed up for foreign exchange settlements and cross-border payments. Ripple even made a substantial $50 million commitment, completed in November 2019, to solidify the partnership.

So, what changed? The answer lies in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Due to the SEC’s lawsuit against Ripple, MoneyGram had to suspend their partnership. This highlights the significant impact regulatory uncertainty can have on crypto-related business ventures.

Despite the current separation, MoneyGram CEO Alex Holmes hasn’t entirely ruled out future collaboration with Ripple. He mentioned the company’s hope to potentially resume the partnership once Ripple’s lawsuit with the SEC is resolved. This leaves the door open for a possible reunion down the line, depending on the outcome of the legal proceedings.

Key Takeaways: MoneyGram, Stellar, and the Future of Payments

Let’s break down the key implications of this significant shift in the payment landscape:

• Stellar’s Gain: MoneyGram’s partnership is a major win for Stellar, boosting its credibility and adoption in the competitive blockchain space.
• Stablecoin Utility: The use of USDC underscores the growing real-world utility of stablecoins for practical applications like cross-border payments.
• Regulatory Impact: The Ripple-SEC lawsuit continues to cast a long shadow, influencing business decisions and highlighting the need for regulatory clarity in the crypto industry.
• Faster, Cheaper Transfers: Ultimately, this partnership aims to make international money transfers faster, more efficient, and potentially cheaper for consumers worldwide.

Looking Ahead

MoneyGram’s move to Stellar marks an exciting chapter in the evolution of cross-border payments. By embracing Stellar’s blockchain and USDC stablecoin, MoneyGram is positioning itself at the forefront of innovation in the financial sector. While the future of Ripple and MoneyGram’s relationship remains uncertain, this development clearly signals a growing trend: established financial institutions are increasingly turning to blockchain and crypto technologies to modernize and streamline their services. Keep watching this space – the world of digital payments is rapidly changing!