Stellar Lumens, a blockchain protocol focused on enabling cross-border transactions, is threatening Ripple’s dominance in this sector with its recent partnership with MoneyGram. While Stellar has been working with MoneyGram for years, the blockchain protocol has recently purchased a minority stake in the company, solidifying their relationship and positioning Stellar as a key player in the financial technology sector.
The undisclosed amount used to purchase the stake was drawn from Stellar’s funds in the treasury, rather than their emerging new business fund. This move not only demonstrates the strength of the project but also allows Denelle Dixon, CEO of Stellar Development Foundation, to secure a seat on MoneyGram’s Board of Directors. With this position, Dixon can now influence decisions within the financial services company.
In a tweet, Dixon expressed excitement about the investment and the years of collaboration between Stellar and MoneyGram. She noted that the investment will enable Stellar to contribute to MoneyGram’s journey, particularly in expanding its digital business, exploring blockchain technology, and enhancing its ability to move and manage money globally.
It is crucial to highlight that the partnership between MoneyGram and Stellar has been long-standing. By leveraging the Stellar blockchain, clients can enable digital wallets and transfer cash to cryptocurrency globally. As part of its evolution, MoneyGram is focused on pioneering Web 3.0 and other innovative payment technologies. This includes launching MoneyGram Access, a platform enabled by the Stellar network that expands access to digital assets and financial services worldwide. This platform provides users in participating locations with access to cash-to-crypto on and off-ramps.
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The recent investment has strengthened the relationship between MoneyGram and Stellar. Austin Arnold of Altcoin Daily has praised the investment and referred to it as a “match made in heaven.” MoneyGram, in its quest to compete with other financial service providers, now has a unique opportunity to utilize blockchain technology and potentially jump ahead of the line. Arnold believes that Stellar poses a threat to Ripple’s dominance in cross-border transactions, signaling that Stellar deserves attention going forward.
Interestingly, MoneyGram had previously partnered with Ripple before the alliance was terminated due to the Securities and Exchange Commission (SEC) lawsuit. This termination led to MoneyGram distancing itself from Ripple. Hence, the partnership between MoneyGram and Stellar seems to be a strategic move to regain the advantages of blockchain technology in cross-border transactions.
With these recent developments, Stellar Lumens is poised to challenge Ripple’s cross-border transaction supremacy. By leveraging its partnership with MoneyGram and the strength of its blockchain protocol, Stellar aims to make cross-border payments faster and cheaper. As the industry continues to evolve, it will be interesting to see how Stellar Lumens and MoneyGram collaborate to reshape the financial technology sector.
In conclusion, the recent investment by Stellar Lumens in MoneyGram is a significant development in the cross-border transaction space. Stellar’s acquisition of a minority stake in MoneyGram strengthens their partnership and positions them as a key player in the financial technology sector. With the ability to leverage the Stellar blockchain and innovate with payment technologies, MoneyGram now has the opportunity to improve its services and compete with other financial service providers. This move also poses a threat to Ripple’s dominance in cross-border transactions, as Stellar Lumens aims to make payments faster and cheaper. Overall, the partnership between MoneyGram and Stellar Lumens has the potential to reshape the cross-border transaction landscape.
