MoneyGram has partnered the Stellar Development Foundation (SDF) with to initiate the roll out of its crypto-to-cash service that is now available in key remittance markets, including the Philippines, Canada, the U.S., and Kenya for the first wave of users.
According to MoneyGram, global cash-out functionality is expected to be available by the end of June 2022.
Powered by the Stellar blockchain and Stellar-enabled digital wallets, MoneyGram’s retail agent network, and Circle’s USD Coin (USDC), a fully-reserved dollar digital currency, the service provides cash users access to cryptocurrency.
Users of the Stellar-connected digital wallets Vibrant and LOBSTR, with more wallets expected to be added soon, can now access this service at MoneyGram’s participating international retail locations.
Settlement with MoneyGram will occur in near-real-time using USDC, enabling an accelerated collection of funds, improving efficiencies and reducing risks.
With the launch of this service, digital wallet users can now move seamlessly from cash to cryptocurrency, to cash again — without requiring a bank account or credit card.
Consumers can now go into a MoneyGram location to either load their digital wallets or cash-out their digital currencies to increase the utility of their holdings.
MoneyGram will expand access to the cash-in service into seven more countries by the end of June, at which point cash-out functionality will also be available globally, where permitted by law.
To support adoption, MoneyGram will offer this as a zero-fee service for the first 12 months.
“At MoneyGram, we’re on a mission to deliver innovative financial solutions that connect the world’s communities, and the initial launch of this service is another important milestone on our journey. It’s especially exciting to launch this service ahead of schedule due to the strong collaboration of our technology teams, and we look forward to further collaboration with SDF as we work on uncovering new ways to utilize blockchain to further streamline cross-border payments.”Alex Holmes, MoneyGram Chairman and CEO.
“A much-needed solution to the cash-to-crypto on/off-ramp problem is here. Today, almost 2 billion people rely on cash for their livelihood, with no options to access the digital economy. At the same time, a persistent pain point for crypto-native users is off-ramping cryptocurrency quickly and reliably.
The groundbreaking nature of this service is how it solves problems for a range of users with varying needs around the world.” said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation.