MoneyGram Plans To Transfer Money Abroad Using Stablecoins

Major money transfer company MoneyGram plans to launch a new service that will allow users to transfer money abroad using stablecoins. According to a recent Bloomberg report, the initiative is in partnership with the Stellar (XLM) blockchain and allows users to convert their stablecoins into hard currency at MoneyGram agent locations.

MoneyGram first announced a partnership with Stellar in October 2021, announcing plans to create instant money transfers using the USD Coin (USDC) stablecoin. Prior to working with Stellar, MoneyGram had a partnership with major remittance network Ripple. The partnership signed in 2019 allowed MoneyGram to use Ripple's product for cross-border payments and foreign exchange settlements.

The new MoneyGram's initiative comes as money transfers become more popular in emerging markets. According to the World Bank, cited by Bloomberg, remittances to low- and middle-income countries increased to $589 bln last year and are projected to further grow this year.

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