MoneyGram is formally shifting on from Ripple.
This week, the funds large introduced a brand new partnership with the Stellar Growth Basis to make use of the Stellar blockchain, a Ripple Labs competitor, to facilitate cross-border funds.
MoneyGram’s funds on the Stellar blockchain will make the most of the world’s second-largest stablecoin, Circle’s USD Coin (USDC).
USDC will enable settlement at MoneyGram to happen in “near-real-time” for the primary time, according to the funds large.
MoneyGram chairman and chief government Alex Holmes explains,
“As crypto and digital currencies rise in prominence, we’re particularly optimistic in regards to the potential of stablecoins as a way to streamline cross-border funds.”
Stellar’s native asset XLM is buying and selling at $0.349708 at time of writing, up 6.5% on the day and practically 29% over the previous week, in line with CoinGecko.
Ripple and MoneyGram entered right into a partnership in June 2019 for international trade settlements and cross-border funds.
As a part of that deal, Ripple made a $50 million dedication to MoneyGram, which it accomplished in November 2019.
Nonetheless, the funds large suspended its use of XRP funds this previous February within the wake of the U.S. Securities and Trade Fee’s (SEC) lawsuit in opposition to Ripple.
The SEC filed a lawsuit in opposition to Ripple Labs in late December, asserting that XRP is a safety and alleging that Ripple Labs illegally offered massive quantities of the crypto asset with out adhering to rules.
In February, Holmes mentioned MoneyGram was monitoring the SEC case and suspended its use of Ripple’s XRP-powered cross-border funds product, On-Demand Liquidity, out of “an abundance of warning.” The CEO additionally mentioned the corporate hoped to proceed its partnership with Ripple sooner or later.
Ripple’s lawsuit with the SEC is ongoing.
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