The Stellar Development Foundation (SDF) – the organization behind the Stellar network that facilitates cross-border transactions – announced becoming a minority investor in payments giant MoneyGram International.
The latest investment is the first of its kind made from SDF’s treasury which includes a position on MGI’s Board of Directors. Denelle Dixon, SDF CEO and Executive Director, will occupy that role, according to the official announcement.
Stellar x MoneyGram
The investment was sourced from SDF’s internal cash reserve, Dixon said in a statement. This cash reserve is designated to support the operations of the non-profit organization rather than the Enterprize Fund, which targets investments in startups and emerging businesses.
The exec mentioned that the investment is expected to position SDF as a crucial player aiding MoneyGram in expanding its digital business, exploring blockchain technology, and contributing to the many other ways the fintech company allows consumers and businesses to transfer and manage money in nearly every country across the globe.
“This is an exciting time for SDF and MGI, and I believe the opportunities will only grow. Continuing to build strong partnerships with organizations across the payments space puts SDF one step closer to achieving our mission of creating equitable access to financial services.”
MoneyGram and SDF’s partnership dates back to October 2021, when the two joined forces to settle transactions with USDC stablecoin for instant and cheaper transactions.
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Bidding Ripple Adieu
The payments firm previously partnered with Stellar’s direct competitor to leverage the RippleNet as part of the exchange settlements process for international remittances. MoneyGram also received financial incentives in the form of XRP in exchange for giving Ripple an equity stake in the company.
MoneyGram, however, severed its ties with Ripple in March 2021, a few months after the SEC slapped the blockchain firm with a lawsuit over XRP. At that time, Ripple maintained that the decision to part ways was mutual and hinted at a potential rekindling once the legal spat was over.
While Ripple secured a partial victory against the SEC this year, MoneyGram has not yet revisited the idea of reinstating the partnership. With SDF, on the other hand, the payment company announced plans to offer stablecoin remittances last year.
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