MoneyGram to Launch Blockchain Partnership for Stablecoin-to-Fiat Remittances

MoneyGram thinks there could be a future in crypto, Bloomberg reports, as it prepares to roll out a service for users to convert stablecoins to hard currency.

The report notes that this would be done in partnership with the Stellar blockchain.

“The world of crypto and the world of fiat are not really compatible today,” MoneyGram CEO Alex Holmes said in an interview with Bloomberg News. “We’re trying to be a bridge from the crypto world to the fiat world.”

The partnership will ensure that users with digital wallets on the Stellar blockchain can convert holdings into Circle’s USDC stablecoin and then cash out through MoneyGram.

This comes amidst increased popularity for remittances, and as stablecoins have been coming under more scrutiny. This is particularly true after the collapse of the UST stablecoin, which put a blight on the public image of the assets.

Terra is different from USDC, which is backed by dollar-equivalent assets kept in reserves. But some critics think there’s risk that other stablecoins could collapse too.

Dante Disparte, chief strategy officer and head of global policy for Circle, said there’s not likely to be a de-pegging with USDC. He said that’s because the currency is fully backed by safe liquid assets.

In related news, MoneyGram chief operating officer Hilary Jackson left her position recently, PYMNTS wrote.

See more: MoneyGram COO Hilary Jackson Stepping Down

Jackson’s responsibilities were assigned to other executives at the company.

She was named COO of the company in April 2021, a news release said, and she served as COO at Selene Financial before that, along with a prior five-year stint with Capital One as head of technology for top products and head of loan servicing.

MoneyGram is also currently mired in a lawsuit filed by the Consumer Financial Protection Bureau (CFPB), saying the company didn’t provide timely payments for overseas recipients.

The company has said the lawsuit is “meritless.”