The Stellar Development Foundation (SDF) has recently announced its investment in a major money transfer platform, MoneyGram. This partnership signals Stellar’s new role as a minority shareholder in MoneyGram.
The CEO of SDF, Denelle Dixon, made it clear this investment decision was a no-brainer. She shared in a tweet that after spending years understanding MoneyGram’s operations and teams, they are thrilled to be part of the company’s next chapter.
MoneyGram and Stellar have already been working together since 2019, and this new investment takes their collaboration to the next level. MoneyGram, a key player in the remittance market with a vast global network, faces challenges like high fees and slow transactions.
By embracing Stellar’s blockchain technology, they aim to revolutionize their financial services. This includes diving into blockchain technology, the tech behind cryptocurrencies like Bitcoin and Stellar Lumens (XLM).
Stellar Joins MoneGram’s Board of Directors
Stellar’s technology integration into MoneyGram’s system is expected to streamline international money transfers.
This could mean faster transactions and lower costs, which is especially important for people and businesses relying on cross-border payments, particularly in countries with limited access to traditional banking services.
Meanwhile, SDF didn’t use their usual investment fund for this move. Instead, they used money already set aside to run their operations. This investment was sufficient for SDF to earn itself a seat on MoneyGram’s board of directors.
“Our investment also includes a seat on its Board of Directors, of which I am proud to represent SDF among a diverse group of leaders in payments, financial services, and technology on the board who are excited to lend their expertise to strengthen and guide MGI’s digital strategy,” Denelle Dixon maintained.
Although the financial specifics are kept under wraps, the partnership is expected to boost MoneyGram’s digital ventures.
Stellar’s native cryptocurrency, XLM, did not react immediately to the news. In fact, it is down by 4.24% over the last 24 hours, currently trading at $0.1287 on Coinmarketcap.
Moreover, this partnership is part of a broader trend of financial institutions adopting blockchain technology. As the world becomes more interconnected, the demand for secure, fast, and efficient cross-border payments continues to grow.