MoneyGram, the financial payments service company teamed up with the Stellar Development Foundation (SDF) to integrate with the Stellar blockchain and Circle’s USD Coin (USDC).
The USDC is a digital dollar stablecoin backed by fully reserved assets and redeemable at a ratio of 1:1 for US dollars and issued by regulated financial institutions.
According to MoneyGram, the collaboration will allow customers to convert cash to USDC and vice versa. Also, the company adds that the conversion of cash into Circle’s USDC will increase the utility and liquidity of USDC tokens while helping more consumers participate in the digital economy.
Denelle Dixon, CEO and executive director of SDF in also addressed the partnership in an email to Blockworks.
“This partnership highlights how much more opportunity there is to improve interoperability between traditional and digital financial rails."We believe blockchain on and off-ramps offer the right solution.”
Added to this, she said that together, they are showing how blockchain and innovations like stablecoins can connect to traditional rails to present new economic opportunities for previously underserved groups.
In addition, based on the statement, Dallas-based United Texas Bank will serve as a settlement bank between Circle and MoneyGram. What's more, the collaboration is expected to start in some markets in 2021 and hit international markets in 2022.