Stellar (XLM) Price Rises After Announcement of Partnership with Wire Transfer Company MoneyGram

One of the largest money transfer companies, MoneyGram, partners with Stellar (XLM)! The company will use the cryptocurrency’s network to make international payments faster and cheaper. MoneyGram and Stellar Development Foundation announce this in a announcement.

MoneyGram plans to settle international payments using Circle’s USDC stablecoin. These transactions are sent over the Stellar network and then settled in the recipient’s local currency. Thanks to Stellar’s technology, these transactions will be much cheaper and faster. Traditionally, several banks are involved in an international transfer.

MoneyGram CEO Alex Holmes sees that cryptocurrencies are increasingly present but that his company is mainly interested in the potential of stablecoins:

“As crypto and digital currencies become increasingly important, we are especially optimistic about the potential of stablecoins as a method to streamline cross-border payments,”

Stellar’s price reacted positively to the news. In a matter of hours, XLM rose in value by more than 15%. This while most altcoins are still lagging at the time of writing.

MoneyGram had previously had such a partnership with Ripple (XRP). However, that partnership ended when it became clear that Ripple was being sued by the US Securities and Exchange Commission (SEC). MoneyGram also ran into problems with this lawsuit after its own investors sued the company over the same issue.

The collaboration between MoneyGram and the Stellar Development Foundation may be perceived as painful at Ripple’s office. Stellar was founded in 2014 by one of the founders of Ripple. Stellar has a similar use case like Ripple, but mainly focuses on small transactions for consumers rather than large financial institutions. You can read more about Stellar on this page!

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