MoneyGram partners with SDF will this give Stellar an edge over XRP?

Image Credits: MoneyGram

The CEO of the Stellar Development Foundation (SDF), Denelle Dixon, expressed her approval of the recent deal in an official statement. The collaboration between the two entities, which began in 2021, led to the creation of a cryptocurrency-backed solution named MoneyGram Access.

Dixon highlighted the significant growth of the XLM ecosystem following its partnership with MoneyGram. She claimed that the Stellar network has now become the dominant platform for converting cash to cryptocurrencies and vice versa, largely attributed to the success of this new product. The focus of the partnership has been on developing tools that enable individuals to enter the digital economy.

Given these developments, Dixion asserted that the decision to invest in MoneyGram was a straightforward one, as conveyed through her official account on the platform. 

The executive from SDF remarked, “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.”

The SDF has chosen to adopt an “active” role in shaping MoneyGram’s trajectory through a recent go-private transaction alongside Madison Dearborn Partners. Instead of utilizing their startup fund, the SDF utilized funds from their cash treasury for this investment.

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For the first time since their partnership’s inception, the SDF will now have representation on MoneyGram’s board of directors. Denelle Dixon, from the SDF, will take on this role and contribute to the enhancement and direction of MoneyGram’s fresh digital economy strategy.

A key element of this strategy involves the SBF’s commitment to advancing blockchain technology exploration, thereby expanding MoneyGram’s digital business dimension.

This move is poised to usher in a new phase of innovation that could benefit XLM through collaborations with MoneyGram and its associates.

Reflecting on this potential, the CEO of SDF conveyed the following sentiment, “We are at an exciting juncture for both SDF and MGI, and I hold the belief that opportunities will inevitably flourish. Nurturing robust partnerships with entities in the payments sector brings SDF closer to realizing its mission of establishing fair access to financial services.”

Presently, XLM is valued at $0.13 and shows no immediate gains from the recent announcement. Nonetheless, over the long haul, the partnership has the potential to yield advantages for the Stellar ecosystem.