MoneyGram a global leader in digital P2P payments, delivers innovative financial solutions to connect the global communities. It serves with a purpose-driven strategy to mobilize the movement of money, a strong culture of fintech innovation, and leading customer-centric capabilities. MoneyGram offers a modern, mobile, and API-driven platform that helps collaborate with the top brands of the world to serve customers via its global retail network, direct-to-consumer (D2C) digital channel and embedded finance business for enterprise clients.
MoneyGram announced a partnership with Stellar blockchain. With this collaboration, MoneyGram is getting ready to power stablecoins for remittance purposes and the service will be based on the Stellar blockchain. The blockchain platform is an open network for money storage and money movement.
Alex Holmes, CEO, MoneyGram, stated, “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.”
USD Coin (USDC) will be used MoneyGram on its platform as soon as it launches its new service. The USD coin or the stablecoin has been launched Coinbase Global Inc, the crypto exchange and FinTech organization, Circle. The USD Coin will quickly be able to increase its value through the platform of Stellar Blockchain. Users of MoneyGram will be allowed to encash the coins for fiat currency using the network of the platform.
The launch of the coin took place as the value of cryptocurrency Terra fell after a strict regulatory check. As the native stablecoin of Terra, TerraUSD’s value come down to under $0.30, it also lost over 97% of its value. The value of losses is around $24 billion out of the combined market value of both tokens, in just 24 hours.
USDC and Terra are two different coins, as USDC is driven by dollar-equivalent assets kept in reserves. But there is the possibility that it could also lead to market devaluation of other stable coins as well.