With crypto adoption growing globally across all sectors, most top firms don’t want to be left out of the trend. Many of them are starting to include digital assets in their operations.
MoneyGram International is the latest company to start offering crypto-related services. According to a Bloomberg report, the money transfer service firm is now in collaboration with Stellar blockchain to start offering stablecoin remittance services.
Improving Stablecoin Remittances
MoneyGram users can perform peer-to-peer stablecoin transactions or swap their stablecoins for fiat through this service. This new service would be an addition to the money remittance services that MoneyGram already offers.
Already, MoneyGram users can pay bills, send money worldwide, and perform other monetary transactions across various digital and retail platforms. However, the collaboration between MoneyGram and stellar blockchain will enable MoneyGram users to receive and send crypto payments via the stellar blockchain.
Then, they can swap the cryptos for the USDC stablecoin. They can also convert the USDC to fiat using the MoneyGram functionality. While speaking on the newly launched feature in an interview with Bloomberg, MoneyGram CEO Alex Holmes stated that “there is a huge gap between the crypto and the fiat worlds. Our primary reason for launching this new service is to be the bridge between these two worlds.”
The Stablecoin Sector Is Still Safe – Circle’s Chief Strategy Officer
Circle’s chief strategy officer, Dante Disparte, dismisses rumors that Circle-issued stablecoin, USDC, and other stablecoins are about to collapse. Many have feared a collapse of the stablecoin sector following the sudden collapse of the TerraUSD (UST) stablecoin. The recent de-pegging and collapse of terra’s stablecoin have caused many investors to doubt whether stablecoins are genuinely safe and secure investments.
Reacting to whether the USDC is safe from a similar collapse, Disparte said there are safe liquid assets that back the USDC fully. He added that “we are not putting the dollar into reserves and lending it out. Rather, our reserves are solely in US treasury and cash.”
Promoting Financial Inclusion
The new collaboration is one of the ways MoneyGram is expanding its operations. It aims to help the unbanked access financial services. Also, the partnership moves the company ahead of the competition in terms of providing money remittance services.
You’d recall that the MoneyGram CEO stated at the beginning of this year that the company would explore the digital asset and blockchain industry more beginning from this year. He added that the company will still go ahead with the plan even though not everyone will like or approve this plan.
Holmes also spoke about the purchase of some MoneyGram shares by top equity company, Madison Dearborn Partners. He expects more investment firms to become MoneyGram partners because the company keeps growing its digital presence.
He also said MoneyGram is an acknowledged leader in innovative digital payments. Holmes added that there is hope for the future of the crypto industry, including the stablecoin sector, regardless of the present conditions in the crypto market.