MoneyGram, one of the largest cross-border money transfer platforms, has entered the cryptocurrency industry. The company has now unveiled a payment channel powered by stablecoins.
Through this service, users will be able to send stable USD Coin (USDC) payments worldwide. Network-facilitated stablecoin payments can be cash-out by recipients.
MoneyGram Launches USDC Transfer Service
The MoneyGram USDC service will be available in various key remittance markets. The countries where these services will be available include the United States, Canada, Kenya and the Philippines, according to the announcement made by Circle and MoneyGram.
The withdrawal functionality of this new service will be launched by the end of this month. The company also plans to drive adoption of these new services by having no transfer fees in the first year of operation.
This new transfer service was developed on the Stellar blockchain (XLM). This service facilitates Stellar Wallet users by allowing them to send USDC to recipients around the world. The service plans to bridge the gap between the digital asset industry and physical cash. He also plans to promote the utility of cryptocurrency payments.
Stellar Development Foundation CEO Denelle Dixon said the move would promote financial inclusion. It would support the unbanked population around the world by enabling them to access the digital economy for the first time.
Estimates of the world’s population that are still unbanked have varied. The World Bank says around 1.7 billion adults worldwide are still unbanked. This population does not have access to an account in any financial institution.
Blockchain technology has fostered financial inclusion by decentralizing the financial sector. Blockchain products like decentralized finance (DeFi), central bank digital currencies (CBDC), and transfer and settlement services have become popular financial tools among the unbanked population.
MoneyGram joins the list of fintech companies that have shown great commitment to the cryptocurrency industry. Over the past few years, fintechs have been at the forefront of ensuring their users have access to crypto-based products. MoneyGram’s main competitor, Visa, also unveiled crypto offerings.
Circle plans to acquire CYBAVO
Circle is the issuer of the second largest stablecoin in the crypto space by market cap. The USDC stablecoin has received notable adoption, and it remains a preferred digital currency for investors who don’t want to be exposed to the volatility of other crypto assets.
Friday, circle announcement that it had obtained an agreement to acquire CYBAVO. The latter is a cryptocurrency infrastructure platform, and Circle believes the move could boost adoption of USDC and Web3 apps.
The two platforms also plan to work together to integrate the technology needed to support Circle’s core product offerings. If the acquisition goes through, Circle will create and manage CYBAVO’s products and services and integrate them into the company.
The acquisition comes amid the growing popularity of “Crypto Platform Services” which are now emerging as the go-to solution for developers and businesses looking to build on Web3. This service supports developers by allowing them to focus on unique customer experiences without worrying about digital asset fundamentals, security aspects and blockchain infrastructure management.
Jeremy Allaire, co-founder and CEO of Circle, praised CYBAVO co-founders Paul Fan and Tim Hsu for unlocking value for developers in the crypto and Web3 industry. “This will help Circle create new opportunities for enterprise and developer services while delivering compelling enhancements to our Circle Account and Circle API capabilities for an enhanced customer experience, helping to grow adoption of the USDC.”
To learn more, visit our Investing in Stellar guide.