Ripple challenger Stellar (XLM) is teaming up with money transferring service MoneyGram to launch a new global crypto-to-cash protocol featuring stablecoin USD Coin (USDC).
According to a recent press release, the duo plans to create a system that will act as a bridge between fiat money and cryptocurrencies to make remittances easier, enhancing the overall utility of digital assets.
“[MoneyGram and Stellar] today announced the initial roll-out of a first-of-its-kind global on/off-ramp service for digital wallets to increase the utility of digital assets by creating a bridge between cash and cryptocurrencies.”
The product was announced last month and is now available in a number of crucial remittance markets, such as the US, Philippines, Canada and Kenya. Its global cash-out feature is expected to be ready by the end of this month, according to the statement.
The service intends to link together physical cash and digital assets by utilizing Stellar’s blockchain technology, which allows money to be tokenized, and MoneyGram’s transfer services. It will also feature stablecoin USDC as its centerpiece.
“This service is a monumental step towards bridging the gap between physical and digital currencies in a way that has not been done before at scale. As it develops, this solution will pave the way for blockchain technology to further financial inclusion, creating fluidity between cash and crypto so more people can benefit from the digital economy…
The partnership focuses on delivering a service that revolutionizes the settlement process. For the first time, settlement with MoneyGram will occur in near-real-time using USDC, one of the world’s fastest growing dollar digital currencies. This enables an accelerated collection of funds, improving efficiencies and reducing risks.”
MoneyGram is offering the service free for the first 12 months.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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?Featured Image: Shutterstock/mirrra3/Satheesh Sankaran