MoneyGram uses Stellar blockchain and the USDC stablecoin for settlements

MoneyGram, the money-transfer service, announced a partnership with the Stellar Development Foundation to provide local-currency payouts via the USD Coin (USDC) stablecoin.

“The MoneyGram network, integrated with the Stellar blockchain and supported by Circle’s USDC, will provide funding in local currency for consumers using USDC, as well as near-instant internal settlements,” the press release said.

United Texas Bank will serve as the settlement bank between Circle and MoneyGram.

The joint solution is expected to launch on select markets as early as 2021, with international rollout planned for 2022.

“As the popularity of cryptocurrencies and digital assets grows, we are increasingly optimistic about the potential of stablecoins as a means of optimizing cross-border payments,” said MoneyGram chairman Alex Holmes.

Ripple was previously a partner of the service. Since 2019 MoneyGram processed cross-border payments through the On-Demand Liquidity (ODL) system, which uses the XRP token.

In November 2019 Ripple bought a stake in MoneyGram for $50 million.

In December 2020 the SEC accused the California fintech company of selling unregistered securities in the form of tokens worth $1.3 billion. The service initially took a wait-and-see stance regarding the status of XRP, but in February 2021 discontinued the use of ODL.

In March Ripple announced the termination of its cooperation with MoneyGram.

A class-action lawsuit has been filed against the service over statements regarding its partnership with Ripple and the XRP token.