The Stellar Development Foundation (SDF) – the organization behind the Stellar network that facilitates cross-border transactions – has announced that it will become a minority investor in the payment giant MoneyGram International.
The latest investment is the first of its kind made from SDF’s coffers which includes a position on MGI’s Board of Directors. Denelle Dixon, SDF CEO and Executive Director, will occupy that role, according to the official announcement.
Stellar x MoneyGram
The investment comes from SDF’s internal cash reserves, Dixon said in a statement. This cash reserve is designated to support the operations of non-profit organizations rather than the Enterprize Fund, which focuses on investments in start-ups and new businesses.
The executive mentioned that the investment is expected to position SDF as a key player helping MoneyGram expand its digital business, explore blockchain technology, and contribute in many other ways that the company is allowed to fintech consumers and businesses transfer and manage money in almost every country. all over the world.
“This is an exciting time for SDF and MGI, and I believe the opportunities will only grow. Continuing to build strong partnerships with organizations across the payments space puts SDF one step closer to achieving our mission of creating equal access to financial services.
The partnership between MoneyGram and SDF began in October 2021, when the two joined forces to settle USDC stablecoin transactions for faster and cheaper transactions.
Bid on Ripple Adieu
The payments company previously partnered with Stellar’s direct competitor to use RippleNet as part of the settlement exchange process for international remittances. MoneyGram also received financial incentives in the form of XRP in exchange for giving Ripple an equity stake in the company.
MoneyGram, however, severed its ties with Ripple in March 2021, a few months after the SEC slapped the blockchain firm with the XRP case. At the time, Ripple maintained that the decision to part ways was mutual and hinted at a potential reversal once the legal spat ends.
While Ripple secured a partial victory against the SEC this year, MoneyGram has yet to revisit the idea of bringing the partnership back. With SDF, on the other hand, the payment company announced plans to offer stablecoin remittances last year.
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