MoneyGram International, one of the world’s largest transfer services in the U.S., is partnering with the Stellar blockchain to create a stablecoin-based remittance platform. The platform would allow users to send stablecoins and easily convert them into fiat currency.
The service, once fully launched, will allow users on the Stellar blockchain to convert their holdings into USDC and cash the funds out through MoneyGram’s network.
The service is expected to help spread cryptocurrency adoption in emerging markets. Remittances in low- and middle-income countries reportedly grew to $589 billion last year, and are projected to rise this year, according to the World Bank.
In an interview, MoneyGram CEO Alex Holmes said the firm is in talks with third-party companies that provide digital wallets in El Salvador alongside the government-backed Chivo wallet, which was introduced when the country made BTC legal tender.
Such a deal would see MoneyGram compete for BTC transfers as well, with Holmes saying that consumers should “be able to transfer Bitcoin to El Salvador or transfer dollars and convert them to Bitcoin” through MoneyGram.