Stellar Lumens (XLM) Jumps After News of a Partnership with Moneygram

MoneyGram, an international remittance company, is again getting into the blockchain pool. On October 6, 2021, the company announced a new partnership to the Stellar Foundation to create a payments bridge that facilitates money transfers and allows near-instant settlement of USDC, a stablecoin tied to the U.S. Dollar.

Moneygram’s vision is highlighted in the announcement, which was made a few hours earlier. It promises that the partnership will “revolutionize settlement flows.”

Moneygram Sees Blockchain as the Future

Moneygram will use a version USDC that runs on the Stellar blockchain to facilitate transactions, as explained in the Press release. United Texas Bank will act as a settlement bank for Circle (issuer of USDC) and MoneyGram (“remittance service provider”).

Moneygram would make this its second attempt at using blockchain to improve their service. Stellar, a direct competitor of Ripple was created after Jed McCaleb, co-founder and CEO of Ripple, decided to leave the company because of conceptual differences. He devoted his entire time to creating his project.

Stellar Lumens, Stellar’s native token, saw a significant jump. It closed the day with a 12%+ increase, also fueled by Bitcoin’s remarkable performance during the day. XLM opened at $0.31, and closed the day at $0.357, with a daily high at $0.364.

Moneygram shares were, however, more conservative. The company was unable to stop the free fall from July’s yearly high. It barely recorded 0.9% growth, going from $7.6 – $7.69 – and there is no sign of a trend reversal.

Ripple? Time for Stellar.

Moneygram is clearly indicating that it wants to move on from the negative experience with Ripple and this partnership shows it.

Moneygram and Ripple announced their partnership in 2019. Moneygram would use RippleNet in international remittances. Ripple will also receive financial incentives in the form XRP in return for Ripple’s equity stake.

After Ripple was accused of using XRP to issue unregistered securities, the partnership ended after nearly two years.

Ripple stated in an official statement that the decision to separate was made jointly. After the SEC dispute was resolved, both parties agreed to re-examine their relationship.

We are proud of the work we were able to accomplish in a short amount of time, as well as the impact we were able to achieve in bringing this first-of-its-kind product to market. Together, we processed billions of dollars through RippleNet and On-Demand Liquidity (ODL).

Moneygram may not be able to wait for Ripple to enter the fray, but Stellar has entered the game.