MoneyGram has unveiled a groundbreaking dollar stablecoin solution set to be available to customers in Colombia through its mobile app. The announcement, made in a press release on Wednesday (Sept. 17), revealed that the solution will utilize a digital, U.S. dollar-backed stored value account that supports traditional fiat currencies and stablecoins.
Users of the app will have the ability to instantly receive funds into a USD balance, store them in stable USD, and easily cash out or spend them. The solution is underpinned by Stellar's blockchain technology and Crossmint's wallet infrastructure and stablecoin payments platform, with customer balances safeguarded in Circle's USDC stablecoin.
MoneyGram's CEO, Anthony Soohoo, emphasized the significance of this development, stating, 'We believe in a future where financial access is universal, and no one gets left behind. Built for global scale, this launch is the first step toward a world where every person, everywhere, has access to dollar stablecoins.'
Stablecoins have been identified as a transformative force in cross-border payments, offering advantages such as instant settlement, lower costs, programmable transfers, and enhanced global accessibility. They present a technical solution to the challenges associated with traditional cross-border payments, including extended settlement times, high fees, limited transparency, and reliance on intermediaries.
Earlier this year, MoneyGram introduced an application programming interface (API) called MoneyGram Ramps, designed to simplify the integration of crypto on/off-ramp functionality for developers. This API enables wallets, exchanges, and FinTech apps to facilitate compliant cash-to-crypto and crypto-to-cash transactions through a unified implementation.
MoneyGram's strategic partnerships, such as the integration of CompoSecure's Arculus Cold Storage Wallet with MoneyGram Access, further enhance the accessibility and usability of its services. This integration allows users to convert physical cash to USDC stablecoins and withdraw cash at MoneyGram locations worldwide, bridging the gap between traditional finance and the digital economy.
Reference from News: MoneyGram to Launch Stablecoin-Based Solution for Cross-Border Finance | PYMNTS.com