To bridge traditional finance and crypto, Stellar Development Foundation (SDF) has acquired a minority share in global FinTech company MoneyGram.
This integration reveals a possible turn-around in the finance sector through possible collaborative efforts between the traditional finance and blockchain industry.
According to Stellar’s blog post, the recent decision deepens its relationship with MoneyGram, which began with a 2021 commercial partnership.
SDF Secures a Position on MoneGram’s Board to Bridge Traditional Finance and Blockchain Technology
Stellar Development Foundation has sealed its unique collaboration with MoneyGram International by obtaining a stake in the company. Though specific details about the deal are lacking, the integration reveals the growing influence of the blockchain industries in the broader finance sector.
It further underscores the rate at which mainstream financial organizations adopt advanced technology to offer enhanced financial solutions to their customers.
Furthermore, SDF’s investment in the cross-border payment giant reveals its confidence in its growth potential and its commitment to advancing inter-border transactions. On Tuesday, August 15, the CEO of Stellar Development Foundation (SDF), Denelle Dixon, was the first to announce this new deal on Twitter (now X).
The decision to invest in @MoneyGram was an easy one. After years of getting to know the business and the teams, we are excited to take part in MGI’s next chapter. It’s been an awesome few years working together, and we are excited for what’s next!https://t.co/PYAKHeXRxx
— Denelle Dixon (@DenelleDixon) August 15, 2023
Expressing optimism about the deal, she noted that the decision to invest in the global financial payment platform was impressively easy.
She noted that collaborating with MoneyGram International had been a pleasant time, adding that the blockchain giant is even more excited about their future together. However, Dixon did not disclose the deal’s financial details, though she revealed that the contract positioned SDF as one of MoneyGram’s board of directors.
MoneyGram Delves Deeper into Blockchain and Crypto
The CEO said Stellar’s investment position will help expand MoneyGram’s digital business. Furthermore, she noted that it would assist MoneyGram in exploiting more blockchain solutions.
In addition, Dixon stated that the move signifies MoneyGram’s commitment to becoming one of the top digital-forward companies in FinTech.
Notably, the SDF signed a commercial deal with MoneyGram International in 2021 but has been working on technology and tools with the firm since 2019. MoneyGram is a global player in the cross-border payment and remittance industry and actively ventures into opportunities to implement blockchain solutions.
The payment giant’s network spans over 200 jurisdictions and has been a leader in providing efficient and accessible fund transfer services to a large user base.
By collaborating with Stellar, MoneyGram aims to facilitate advanced security, transparency, and speed of its cross-border payments.
Interestingly, MoneyGram opened its arms to US-based crypto users to buy, sell, and store digital assets using its mobile application. In July, the FinTech company announced a new deposit solution for users in Venezuela via collaboration with Banesco domestic bank.
