Despite LUNA woes, MoneyGram to use stablecoin in remittances

abdelaziz Fathi

US money-transfer company MoneyGram is set to launch a new service that enables consumers to send money using USD Coin (USDC) and convert directly to and from fiat.


In a recent interview with Bloomberg, MoneyGram CEO Alex Holmes said the company will allow crypto wallets connected to the Stellar Network to access its global retail platform. Working alongside Circle, Stellar blockchain will enable users to convert their holdings into its popular stablecoin and then cash out through MoneyGram. The combined effort also offers a near-instant backend settlement, account funding and local fiat withdrawals.

The partnership is expected to launch soon in select jurisdictions, possibly starting with El Salvador, which adopted bitcoin as legal tender in 2021, with an expanded international rollout planned in the future.

“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. If a country like El Salvador is going to make bitcoin seamless with US dollars in-country, I think that consumers, through MoneyGram, should be able to transfer bitcoin to El Salvador, or transfer dollars and convert them to bitcoin,” Holmes said.

“If that’s where the world is going, let’s participate in that world and let’s see how we can help fulfill that opportunity,” he added.

A vote of confidence in stablecoins

The move came as financial services giants, including PayPal and Square, have been increasingly making moves in the crypto space.

MoneyGram’s recent initiative came barely a year after it officially cut ties with Ripple Labs in light of the ongoing legal fight with the US Securities & Exchange Commission. The two firms put their tie-up, which dates back to 2018, on hold after the SEC charged Ripple with conducting a $1.3 billion illegal securities offering.

Alongside a partnership to pilot Ripple’s XRP in cross-border payments, the token issuer bought a $30 million stake in MoneyGram in 2019. The Nasdaq-listed firm revealed it netted more than $60 million in fees from using XRP transfers as an alternative source of revenues in both payment and settlement services

The move also comes even as the meltdown of Terra’s token, which once ranked among the top 10 most valuable cryptocurrencies, has shaken confidence in other stablecoins, and the broader cryptocurrency markets miserably collapsed.

LUNA tanked to virtually zero a couple of hours ago after having peaked close to $120 last month, as per data from CoinMarketCap. Additionally, its sister stablecoin TerraUSD, or UST, lost its dollar peg before the collapse.

Read this next

Digital Assets

Wirex launches crypto loans with LTV of up to 80%

The recent market collapse hasn’t stopped Wirex from pursuing its crypto loan offering allowing users to borrow up to $100,000.

Digital Assets

Chainalysis and Cellebrite to launch integrated solution

As a result of this cooperation, examiners, investigators, analysts, and compliance officers will be able to seamlessly identify illicit cryptocurrency-related activity in a single place as part of their familiar digital investigation workflows.

Executive Moves hires ex-Google Tom Yang for brand building has appointed Tom Yang as Executive Vice President (EVP) to gradually carry out its global brand building and market development.

Digital Assets

What if Ripple loses and XRP is deemed a security?

The outcome of the Veritaseum case could provide guidance to XRP holders looking for answers about what will happen to their assets.

Executive Moves

BestEx Research taps Paul Merolla as General Counsel

He has served as General Counsel at institutional broker Instinet Group and was Associate Counsel at Goldman Sachs.

Industry News

eToro announces termination of SPAC deal amid “circumstances”

“We ended Q2 2022 with approximately 2.7 million funded accounts, an increase of over 12% versus the end of 2021, demonstrating continued customer acquisition and retention rates that have been improving over time. We remain confident in our long-term growth strategy and excited for the future of eToro.”

Digital Assets

EU crypto regulation limits privacy to 1,000-euro threshold

MiCA complements existing AML rules and aims to enhance financial stability and investor protection in Europe.

Retail FX

GKFX Prime adds MT4 and MT5

In April, GKFX launched a proprietary trading platform.

Industry News

UEZ hits the Korean market

On the 8th to 10th of June 2022, the team from UEZ Markets attended the breathtaking Smart Tech Korea 2022 expo in the wonderful city of Seoul