MoneyGram International has announced a massive partnership to strengthen its crypto endeavors. This week, the company confirmed that it had partnered with the Stellar Development Foundation to integrate USDC transfers and conversions via its platform.
Seamless Stablecoin Transactions Always
According to an official announcement, MoneyGram has expanded support for crypto wallets in its infrastructure. This development means that crypto wallets that are connected to the Stellar Network will be able to access MoneyGram’s global retail platform. The partnership will also include Circle, the global financial services company that launched the USDC stablecoin.
All the partners will come together to enable near-instant USDC transaction settlements - including account funding, local fiat withdrawals, and seamless fiat conversions.
The partnership will also include the United Texas Bank, which will act as the settlement bank to complete all settlement processes. MoneyGram explained that it had come to understand the role of stablecoins in ensuring seamless cross-border payments. Alex Holmes, the company’s chairman, added that they are looking to participate in this development and move the industry forward.
Stellar chief executive Denelle Dixon said that this partnership would enable cash users to convert their money in and out of USDC. This way, customers will be able to access quick and affordable digital asset services.
The partnership is expected to launch towards the end of the year in select jurisdictions, followed by an expanded rollout next year.
A Tale of Different Companies
Earlier this year, MoneyGram partnered with Bitcoin ATM operator Coinome Inc to allow U.S. customers to withdraw their cryptocurrencies at point-of-sales outlets across the country.
The partnership also allowed customers to buy Bitcoin and other assets, expanding crypto ATMs’ crypto-to-cash model.
While MoneyGram is looking to expand its services, even more, Circle doesn’t appear to be doing so hot. This week, the stablecoin issuer announced that it had been subpoenaed by the Securities and Exchange Commission (SEC)’s Enforcement Division. Circle said that it would cooperate fully with the regulator following the lawsuit, adding:
“In addition, in July 2021, we received an investigative subpoena from the SEC Enforcement Division requesting documents and information regarding certain of our holdings, customer programs, and operations. We are cooperating fully with their investigation.”
The investigation appears to be part of Circle’s plans to go public. The company is finalizing the deals of a special-purpose acquisition with Concord Acquisition Corp. in a deal valued at about $4.5 billion. Once the deal finalizes, Circle will be able to go public sometime in 2022.
Besides the SEC suit, the Wall Street Journal reported that the Biden administration is currently weighing new rules that would create a “special-purpose charter” to put stablecoin issuers in the same category as banks.
The scope of the regulation remains unclear, but it is expected to be tailored to meet the business model of these companies. It would mean that companies like Circle, Tether Limited, and even exchanges like Coinbase and Binance will need to meet additional regulatory requirements.