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MoneyGram (MGI) Partners Stellar Foundation to Expand Crypto

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MoneyGram International, Inc. has partnered with the Stellar Development Foundation, a non-profit organization. This entity supports the development and growth of Stellar, which is an open-source public blockchain that allows money to be tokenized and transferred anywhere in the world.

The partnership will integrate Stellar blockchain with MoneyGram's network. This will enable cash funding for consumers using Circle's USD Coin (USDC) and payout in local currency. Thus, consumers will be able to easily convert USDC into cash. USDC is a type of cryptocurrency that is referred to as stablecoin.

This move reflects MoneyGram’s efforts to solidify its footprint in the crypto currency market. Easy exchange of crypto with cash will boost the liquidity of the digital asset and increase its attractiveness. This partnership will become more impactful as more wallets and companies join the Stellar network.

Apart from the conversion of crypto into cash, a remarkable feature of the partnership is that it allows near-real-time settlement using Circle's USDC, which is the world's fastest-growing dollar digital currency. An expedited settlement enables fast collection of funds, improving efficiency and reducing risk.

This pact will expand MoneyGram’s cross-border payment innovation and blockchain-enabled settlement. The partnership is scheduled to go live in select markets during 2021 with another international rollout planned in 2022.

MoneyGram is consistently advancing in the Crypto currency space. Recently, it joined Coinme, the largest licensed cryptocurrency cash exchange in the United States. Per the terms of the deal, MoneyGram will provide Coinme with its API-driven payment network, which will be utilised in buying and selling the digital currency in cash.

Earlier, MoneyGram partnered with Ripple in 2019. The deal allowed the former to use the latter's product XRP for cross-border payment and foreign exchange settlement. The partnership ended after regulators charged Ripple with conducting a $1.3-billion illegal securities offering.

With all the buzz around crypto currency and a marked rise in its value might lure investors to invest in the same. MoneyGram’s wide availability will be an easy source to buy crypto to invest.

Other financial services firms like PayPal Holdings, Inc. (PYPL - Free Report) , Visa Inc. (V - Free Report) and MasterCard Incorporated (MA - Free Report) made a number of moves in the crypto space. PayPal allows U.S. customers to pay merchants globally using four different crypto currencies. Mastercard allows companies to accept cryptocurrency payments on its network. Global Payments Inc. (GPN) tied up with BitPay to allow merchants to accept Bitcoins.

MoneyGram is steadily investing in developing its digital money transfer platform, which is contributing to its top-line growth. Year to date, the stock has gained 40.7% compared with its industry's growth 17.1%.

Zacks Investment ResearchImage Source: Zacks Investment Research

The company carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


 


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