- MoneyGram disclosed that it will partner with the Stellar Development Foundation.
- Stellar is actually the competitor of MoneyGram’s previous partner, Ripple.
- Because of this, traders want to know if this will directly affect XRP’s price.
The news of MoneyGram and Stellar collaborating has immediately spread within the crypto space. MoneyGram’s previous partner, Ripple, already felt its effect. XRP, Ripple’s native token, is trying to break through but the aforementioned collaboration is affecting it greatly.
In detail, MoneyGram is one of the world’s largest money transfer service providers. It recently partnered with Stellar Development Foundation, the non-profit organization that powers the Stellar blockchain. This partnership, particularly, will enable Stellar’s integration into MoneyGram using USDC — a stablecoin that Coinbase (NASDAQ:COIN) and Circle govern.
Commenting on the collaboration, MoneyGram CEO — Alex Holmes, says,
We’re enabling consumers to bridge crypto assets and fiat currency and we think that we can be a pioneer and a leader in that opportunity.
Additionally, the two also plan to allow cash financing and payments using different currencies like USD, Japanese Yen, and USDC.
Stellar Foundation CEO and Executive Director — Denelle Dixon, further added that,
You can bring in your cash into a MoneyGram location and bring it onto the blockchain, and you don’t have to have a bank account to do that. The same is true if you don’t have a bank account to pull your assets off of the blockchain like Stellar. [Now] you can do that by going into a MoneyGram location and picking up your cash there.
For Dixon, the most important thing is for users to have easy access to crypto services that were previously not available.
On a different note, this collaboration is notable because Ripple is MoneyGram’s previous partner and also Stellar’s competitor. It was in March 2021 when the contract between MoneyGram and Ripple was terminated. The relationship between the two ended when the SEC filed a lawsuit against Ripple saying XRP is an “unregistered security”.
Nonetheless, this news seems to bother the XRP community relatively. Over the past 24 hours, XRP tries to break through $1.1. However, according to CoinMarketCap, it does look like it’s struggling since it now trades at $1.07, at the time of writing.