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

Crypto exchange Bittrex exits US market amid regulatory woes

Bittrex said on Friday it plans to wind down operations in the United States and voluntarily liquidate because of the uncertain regulatory environment surrounding their business.

Institutional FX

Tradeweb completes integration of Nasdaq’s US fixed income platform

Tradeweb Markets has completed the technology integration of Nasdaq’s US fixed income electronic trading platform, formerly known as eSpeed, which it acquired two years ago in a $190 million, all-cash transaction.

Digital Assets

FTX Europe to allow client withdrawals via new website

The Cypriot unit of failed cryptocurrency exchange FTX has launched a new website that it says would allow customers to withdraw deposits of fiat currency and crypto assets after months of suspension.

Retail FX

Liquidators apply to cancel SVS Securities’ FCA license

An update published today by Leonard Curtis said the UK high court of justice has approve their application to bring the special administration of the failed wealth manager SVS Securities to an end.

Digital Assets

Japan forms government panel to pilot digital yen

Japan’s Finance Ministry has created an advisory panel to look at the feasibility of issuing a central bank digital currency, otherwise known as “CBDC”.

Digital Assets

USDC sees massive $10.4 billion outflows in March

Cryptocurrency traders have withdrawn more than $10 billion from the world’s second largest stablecoin, USDC, in less than three weeks even as concerns over the fallout from the Silicon Valley collapse have receded.


OSTTRA’s Joanna Davies goes beyond 30-30-30 data standard at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Joanna Davies about OSTTRA.


CloudMargin’s Stuart Connolly on how to manage collateral amid high rates at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Stuart Connolly about CloudMargin’s SaaS platform, said to be the only cloud-native collateral and margin management system in the industry, at a time of stress due to rising interest rates.


Baton Systems’ Alex Knight on solving post-trade with DLT at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Alex Knight about Baton Systems’ about rising settlement fails, collateral management, and the profile of DLT beyond cryptocurrencies.