The Stellar Development Foundation (SDF) has taken on a minority investment role in MoneyGram International, a leading payments provider, as revealed in an announcement on August 15th.
Denelle Dixon, the CEO and Executive Director of the Stellar Development Foundation, expressed the decision to invest in MoneyGram as a straightforward one.
Dixon clarified in a corresponding blog post that the investment stemmed from SDF’s internal cash reserves, earmarked for supporting the foundation’s operations.
This funding source diverged from Stellar’s Enterprise Fund, typically utilized for backing startups and early-stage ventures.
Financial particulars of the investment were not disclosed by Dixon, but she did highlight that the SDF’s investment would secure them a position on MoneyGram’s board of directors.
The purpose of the investment, Dixon explained, is to bolster MoneyGram’s digital operations and explore the potential of blockchain technology.
This strategic move signifies MoneyGram’s dedication to embracing digital transformation and emerging as a frontrunner in fintech on a global scale.
The affiliation between Stellar Development Foundation and MoneyGram traces back to 2019, evolving into a more formalized partnership in 2021.
This investment marks the latest step in their collaboration.
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In a noteworthy development, MoneyGram facilitated the purchase, sale, and custody of cryptocurrencies through its mobile app for users based in the United States in November 2022.
In another recent initiative in July 2023, MoneyGram, in partnership with local bank Banesco, introduced a novel account deposit service targeted at consumers in Venezuela.
Despite this significant announcement, Stellar’s native token, Stellar XLM, exhibited a muted response, experiencing a 4.4% drop to $0.129 on the day of the announcement.
This information is according to Cointelegraph price data.
Stellar XLM had previously experienced an upswing following a legal victory for Ripple.
However, it has faced a subsequent 28% decline and remains notably lower, down by 85%, from its all-time high of $0.875, reached in January 2018.
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