With the use of the Stellar blockchain, the payment provider will be able to settle USDC payments with MoneyGram in “near real-time.”
Inbound and outbound transfer services On Friday, MoneyGram finally opened its stablecoin-powered payment channel, allowing users to transfer USD Coin (USDC) payments over the globe that can be withdrawn as cash by receivers.
Circle and MoneyGram said Friday that the service would be available in Canada, the United States, Kenya, and the Philippines. By the end of June, global cash-out capabilities will be accessible. For the first year, there will be no costs associated with using the USDC transfer service.
MoneyGram’s new transfer service was developed on the Stellar (XLM) blockchain, as reported by Cointelegraph, and enables users of Stellar wallets to send USDC to destinations all around the globe. The business aims to bridge the gap between digital assets and real-world currencies while also showcasing the potential of crypto payments.
According to Denelle Dixon, CEO of the Stellar Development Foundation, a new transfer channel will allow the world’s unbanked people to take their initial steps into the digital economy. There are an estimated 1.7 billion people who do not have access to a bank account, according to the World Bank. Blockchain technology has been proposed as a possible solution to financial exclusion, whether via decentralised finance, central bank digital currencies, or crypto-powered transfer and settlement services.
On Friday, Circle said that it has reached a deal to buy CYBAVO, a crypto infrastructure platform, which it hopes would further facilitate the adoption of USDC.
The USDC stablecoin from Circle maintains a one-to-one dollar peg backed by cash and short-dated U.S. Treasury bonds and is the second biggest stablecoin by market value.
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