On the 10th of June, MoneyGram announced its collaboration with Stellar Development Foundation (SDF) to build a fiat-to-crypto on-ramp and off-ramp service. The new fiat-to-crypto service is now available in several countries around the globe. Currently, citizens of Canada, the UK, the US, and the Philippines have access to this service, and plans are being made to expand the geographical reach in the coming weeks.
MoneyGram had been in talks with the Stellar Development Foundation since October last year. MoneyGram users will be able to send and receive funds across borders faster. USDC will be the primary crypto-asset integrated into the on/off-ramp services. Stellar blockchain will power the USDC token created by Circle.
In the first year of use, MoneyGram will offer the service to users at zero fees. This will boost adoption and grow their user base. The service will also close the gap between digital and fiat currencies, as many fiat-crypto on-ramps, today are done on a small scale.
MoneyGram x Stellar Development Foundation
The CEO of MoneyGram was excited to announce the launch of this service. Commenting on the opportunities of the service, Alex Holmes said: “We’re thrilled to work alongside the Stellar Development Foundation on this important initiative to bring more opportunities to consumers around the world by making the worlds of crypto and local fiat currency compatible.”
He further stressed that MoneyGram is on a mission to create innovative financial solutions that connect global communities seamlessly.
Stellar Foundation’s CEO also described the new service as a much-needed solution to a pressing problem experienced by fiat and crypto users. Close to 2 billion individuals today who rely on fiat for their livelihood have no means to access the digital economy. The MoneyGram x Stellar on/off-ramp service will solve this significant problem, making it easier for people to access digital and physical funds.