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MoneyGram, one of the largest cross-border money transfer platforms, has been committed to the cryptocurrency sector. The company has now unveiled a payment channel powered by stablecoins.
Through this service, it will be possible for users to send USD Coin (USDC) stablecoin payments globally. The stablecoin payments facilitated through the network can be withdrawn as cash by the recipients.
MoneyGram launches USDC transfer service
The MoneyGram USDC service will be available across different key remittance markets. The countries where these services will be available include the United States, Canada, Kenya, and the Philippines, according to the announcement made by Circle and MoneyGram.
The cash-out functionality for this new service will be launched by the end of this month. The company is also planning to boost the adoption of these new services by having zero transfer fees within the first year of operation.
This new transfer service was developed on the Stellar (XLM) blockchain. This service facilitates Stellar wallet users by enabling them to send USDC to recipients globally. The service plans to bridge the gap between the digital asset sector and physical cash. It also plans to promote the utility of cryptocurrency payments.
The CEO of the Stellar Development Foundation, Denelle Dixon, said that this move would foster financial inclusion. It would support the unbanked population globally by allowing them to access the digital economy for the first time.
The estimates about the world’s population that is still unbanked have varied. World Bank says that around 1.7 billion adults globally remain unbanked. This population does not have access to an account at any financial institution.
Blockchain technology has fostered financial inclusion by decentralizing the financial sector. Blockchain products like decentralized finance (DeFi), central bank digital currencies (CBDCs), and transfer & settlement services have become popular financial tools among the unbanked population.
MoneyGram joins the list of fintech companies that have shown great commitment to the cryptocurrency sector. Over the past few years, fintechs have been at the forefront of ensuring that their users have access to crypto-based products. MoneyGram’s main competitor, Visa, has also unveiled crypto offerings.
Circle plans to acquire CYBAVO
Circle is the issuer of the second-largest stablecoin in the crypto space by market cap. The USDC stablecoin has received notable adoption, and it remains a preferred digital currency by investors who do not want exposure to the volatility of other crypto assets.
On Friday, Circle announced that it had secured an agreement to acquire CYBAVO. The latter is a cryptocurrency infrastructure platform, and Circle believes this move could foster the adoption of USDC and Web3 applications.
The two platforms also plan to work together to integrate the technology needed to support Circle’s core product offerings. If the acquisition goes through, Circle will create and manage CYBAVO’s products and services and incorporate them within the company.
The acquisition comes amid the growing popularity of “Crypto Platform Services” that are now emerging as the ideal solution for developers and companies that want to build on Web3. This service supports developers by allowing them to focus on unique customer experiences without being concerned about the fundamentals of the digital asset, the security aspects, and the management of blockchain infrastructure.
Jeremy Allaire, the co-founder and CEO of Circle, commended the co-founders of CYBAVO, Paul Fan and Tim Hsu, for unlocking value for developers across the crypto and Web3 sector. “That will help Circle create new opportunities for enterprise and developer services while also providing compelling enhancements to our Circle Account and Circle API capabilities for an improved customer experience, helping to grow adoption of USDC.”
To learn more visit our Investing in Stellar guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.