By
Mayowa Adebajo
April 26th, 2024
Stellar Development Foundation said that the investment in MoneyGram in growing its digital business, researching blockchain technology, and contributing in other ways.
On Tuesday, August 15, cross-border payments platform Stellar announced its decision of investing in the global money-transfer company MoneyGram International. By using money from its own treasury for investment, the Stellar Foundation becomes a minority holder in MoneyGram.
Stellar Development Foundation CEO and Executive Director Denelle Dixon called the new investing decision “an easy one”. “After years of getting to know the business and the teams, we are excited to take part in MGI’s next chapter. It’s been an awesome few years working together, and we are excited for what’s next!” she noted.
“Most importantly, it signifies a rededication from MoneyGram International, one of the world’s leading global financial technology, to becoming a digital-forward leader in fintech,” added Dixon. However, the Stellar Development Foundation hasn’t given enough details about the exact investment amount.
This investment allows SDF to support MGI’s efforts, especially in areas like growing its digital business, researching blockchain technology, and contributing to the various ways this fintech company helps people and businesses handle money worldwide. It’s also a significant commitment from MGI, a prominent global fintech, to embrace digital innovation and become a leader in the field.
Stellar and MoneyGram Partnership
The Stellar Development Foundation and MoneyGram started working together in 2021, but their collaboration on tools and technology goes back to 2019.
By November 2022, MoneyGram allowed users in the United States to buy, sell, and hold cryptocurrency using its mobile app. In July 2023, the company introduced a new service that lets people in Venezuela deposit funds into their accounts through its partnership with local bank Banesco.
Stellar’s goal is to use blockchain technology to make cross-border payments faster and more affordable. MoneyGram is one of the largest remittance companies in the United States, competing with Western Union, Intermex, and Euronet.
Speaking to the crypto publication Decrypt, Stellar Development Foundation’s Director of Communications and Public Affairs Ellen Canale said:
“Investment isn’t specific to any particular work” but because “we are confident in the organization, management, and board, and the company’s plans for the future focused on increasing MGI’s digital investment and bringing value to the under and unbanked through digital experiences.”
Stellar Foundation has also been investing in other projects this year. Earlier in April, SDF invested in Franklin OnChain US Government Money Fund.