- Stellar has announced a strategic investment in Moneygram International, solidifying their relationship
- The investment, funded from Stellar’s treasury, follows two years of collaboration between the two companies
- Moneygram, a major player in remittances, will employ the investment to bolster its digital presence, explore blockchain tech, and enhance global money movement
Stellar has tightened its connection with Moneygram International by announcing a strategic investment in the firm. According to an official statement released on Tuesday, the foundation behind Stellar’s native cryptocurrency XLM confirmed that it had taken on a minority investment role within Moneygram, utilizing funds from its own cash treasury. While specific financial details of the investment remain undisclosed, the collaboration between these two industry players has garnered considerable attention and comes almost two years after the two companies began working with Circle on a blockchain payments system.
Moneygram to Expand Operations with Investment
Moneygram, as one of the foremost American remittance giants, is one of the top competitors in the financial services industry, challenging established players like Western Union, Intermex, and Euronet. In a blog post announcing the move, the Stellar Foundation explained that its investment would be used “in areas such as expanding its [Moneygram’s] digital business, exploring blockchain technology, and contributing to the many other ways this financial technology company enables consumers and businesses to move and manage money in nearly every country around the world.”
Ellen Canale, the Director of Communications and Public Affairs at the Stellar Development Foundation, shed more light on the motivation behind this venture, explaining that the investment was not tied to any specific project, but rather stemmed from a profound confidence in Moneygram’s leadership, management, and future-oriented strategies.
The decision to invest in @MoneyGram was an easy one. After years of getting to know the business and the teams, we are excited to take part in MGI’s next chapter. It’s been an awesome few years working together, and we are excited for what’s next!https://t.co/PYAKHeXRxx
— Denelle Dixon (@DenelleDixon) August 15, 2023
The venture will focus in particular on enhancing Moneygram’s digital presence and expanding its efforts to cater to underserved and unbanked populations through cutting-edge digital experiences.
Moneygram and Stellar began working with each other in 2021, with the company using the Stellar blockchain to move the USDC stablecoin in a three-way remittance trial. This led to a full product being launched a year later.
