Despite LUNA’s woes, MoneyGram will use the stablecoin in remittances
US money transfer company MoneyGram is set to launch a new service that allows consumers to send money using USD Coin (USDC) and convert directly to and from fiat.
In a recent interview with Bloomberg, MoneyGram CEO Alex Holmes said the company would allow crypto wallets connected to the Stellar network to access its global retail platform. Working alongside Circle, the Stellar blockchain will allow users to convert their holdings into its popular stablecoin and then cash out through MoneyGram. The combined effort also offers near-instant backend settlement, account funding, and local fiat withdrawals.
The partnership is expected to launch soon in select jurisdictions, possibly starting with El Salvador, which adopted bitcoin as legal tender in 2021, with an expanded international rollout planned in the future.
“The crypto world and the fiat world are not really compatible today. We try to be a bridge between the crypto world and the fiat world. If a country like El Salvador wants to make bitcoin transparent with dollars Americans in the country, I think consumers, through MoneyGram, should be able to transfer bitcoins to El Salvador, or transfer dollars and convert them to bitcoins,” Holmes said.
“If this is where the world is going, let’s participate in this world and see how we can help seize this opportunity,” he added.
A vote of confidence in stablecoins
The move came as financial services giants including PayPal and Square increasingly made moves in the crypto space.
MoneyGram’s recent move comes barely a year after it officially severed ties with Ripple Labs in light of the ongoing legal fight with the United States Securities & Exchange Commission. The two companies suspended their tie-up, which dates back to 2018, after the SEC accused Ripple of conducting an illegal $1.3 billion securities offering.
Along with a partnership to pilot Ripple’s XRP in cross-border payments, the token issuer bought a $30 million stake in MoneyGram in 2019. The Nasdaq-listed company revealed that it had collected more than $60 million. dollars in fees using XRP transfers as an alternative source of income. in payment and settlement services
The move also comes even as the collapse of the Terra token, which once ranked among the top 10 most valuable cryptocurrencies, has shaken confidence in other stablecoins, and broader cryptocurrency markets are sadly collapsed.
LUNA fell to virtually zero a few hours ago after peaking near $120 last month, according to data from CoinMarketCap. Additionally, its sister stablecoin TerraUSD, or UST, lost its peg to the dollar before the collapse.