One of the largest companies in the cross-border payments industry, MoneyGram, is working with Stellar on an instant money transfer pilot project using the USDC stablecoin, created by Circle.
The essence of the partnership is to provide consumers with a convenient option for converting payments into various world currencies. United Texas Bank took over the role of the person responsible for settlements between Circle and MoneyGram. Thanks to agreements with Stellar and the use of USDC tokens, MoneyGram clients will be able to transfer funds, exchange them directly into fiat and vice versa.
Firms will begin the active phase of developing the idea as early as the IV quarter of 2021 and while it will be relevant in specific jurisdictions. But, by the beginning of 2022, the partners intend to complete the deployment of a bridge between the MoneyGram consumer base of 150 million people and the USDC stablecoin at the international level.
The news of the partnership came shortly after the firm allowed customers to cash out their crypto assets at US outlets. MoneyGram was helped in this by the operator of the exchanger and crypto ATMs Coinme Inc.
The payment giant already partnered with another major crypto company, Ripple, back in 2019 to settle foreign currencies using digital currencies to facilitate cross-border payments. Then it became possible thanks to the On-Demand Liquidity system. However, already in the first quarter of 2021, the company suspended support for XRP.