Thursday, February 22, 2024
Blockchain

Stellar Development Foundation Invests in International Transfer Giant MoneyGram

The Stellar Development Foundation (SDF) has recently become a minority investor in MoneyGram International (MGI) during its go-private transaction with Madison Dearborn Partners (MDP). This announcement was made by Denelle Dixon on August 15, 2023, via the official Stellar blog.

SDF’s association with MoneyGram dates back to 2021 when they established a commercial partnership. However, their collaboration began even earlier, in 2019, when they initiated the development of tools that later evolved into “MoneyGram Access.” This partnership has been instrumental in positioning the Stellar network as a prominent player in the cash-to-crypto domain, offering seamless avenues for individuals to transition value into and out of the digital realm.

The collaboration between the two entities provided SDF with a comprehensive understanding of MoneyGram’s operations, future plans, and the company’s vision for digital transformation. This knowledge solidified SDF’s confidence in MoneyGram, leading them to seize the opportunity to invest when it presented itself.

The investment was sourced from SDF’s cash treasury, which is designated to support the foundation’s operations. Notably, this is the first investment of its nature made from the SDF’s treasury. Additionally, as part of the investment, SDF has secured a seat on MoneyGram’s Board of Directors. Denelle Dixon expressed her pride in representing SDF on the board, which comprises a diverse set of leaders from the realms of payments, financial services, and technology.

This strategic investment aligns with SDF’s mission to foster equitable access to financial services. It also enables SDF to play a pivotal role in MoneyGram’s digital journey, especially in areas like digital business expansion, blockchain technology exploration, and other fintech endeavors. The partnership underscores MoneyGram’s renewed commitment to transitioning into a leading digital-forward entity in the fintech space.

Both SDF and MoneyGram anticipate a promising future, with the potential for further collaboration and growth in the financial technology sector.

Both Stellar and Ripple XRP target the international payment and transfer sector, each touting their blockchain as the premier network for such transactions. In its early days, Stellar was perceived as a fork of XRP, given they once shared the same codebase.

Stellar ($XLM), a distinguished entity in the cryptocurrency world, was co-founded by Jed McCaleb, who had previously served as the CTO of Ripple XRP. McCaleb is also known for founding the once-renowned Mt. Gox bitcoin exchange, which unfortunately later suffered a significant hack. Over time, Stellar has established a unique position in the digital currency arena, with the Stellar Development Foundation at its helm, championing equitable access to global financial services.

Image source: Shutterstock

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