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MoneyGram Receives Investment from Stellar Development

The Stellar Development Foundation’s recent investment in MoneyGram International solidifies their partnership, boosting Stellar’s role in cash-to-crypto transactions.

Key Points

  • Stellar Development Foundation invests in MoneyGram International during go-private transaction.
  • Long-standing partnership between SDF and MoneyGram boosts Stellar’s role in cash-to-crypto domain.
  • SDF gains knowledge and confidence through collaboration, makes first investment from cash treasury.
  • Partnership promotes equitable financial access, aligns with MoneyGram’s digital transformation goals.

The Stellar Development Foundation (SDF) has recently announced its minority investment in MoneyGram International (MGI) during its go-private transaction with Madison Dearborn Partners (MDP).

The news came from Denelle Dixon, who made the announcement through the official Stellar blog on August 15, 2023. The partnership between SDF and MoneyGram began in 2021 when they established a commercial partnership.

However, their collaboration actually started back in 2019 when they initiated the development of tools that eventually evolved into “MoneyGram Access.”

This collaboration has played a crucial role 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.

Solidifying Confidence Through Knowledge

Through their partnership, SDF gained 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, prompting them to seize the opportunity to invest when it presented itself.

The investment made by SDF was sourced from their cash treasury, which is designated to support the foundation’s operations. This is the first investment of its kind made from the SDF’s treasury.

Along with the investment, SDF secured a seat on MoneyGram’s Board of Directors. Denelle Dixon expressed her pride in representing SDF on the board, which consists of a diverse set of leaders from the realms of payments, financial services, and technology.

A Partnership Aligned with Equitable Access

This strategic investment aligns with SDF’s mission to foster equitable access to financial services.

It allows SDF to play a crucial role in MoneyGram’s digital journey, especially in areas like digital business expansion, blockchain technology exploration, and other fintech endeavors.

The partnership highlights MoneyGram’s renewed commitment to becoming 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.

The investment marks a significant milestone for both organizations, as they work towards their shared goals of providing accessible and innovative financial services.

A Distinct Entity with a Renowned Co-Founder

Stellar ($XLM), a distinguished entity in the cryptocurrency world, was co-founded by Jed McCaleb, who 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 leading the way in championing equitable access to global financial services.

Concluding Thoughts

Both Stellar and Ripple XRP target the international payment and transfer sector, with each showcasing their blockchain as the premier network for such transactions.

In its early days, Stellar was often seen as a fork of XRP due to their shared codebase. However, Stellar has since paved its own path, carving out a distinct position in the cryptocurrency market.

In conclusion, the partnership between the Stellar Development Foundation and MoneyGram International marks an important milestone in the world of financial technology.

Through their collaboration, they aim to revolutionize the accessibility and efficiency of global financial services, paving the way for a future of innovation and growth.