The foundation behind XRP rival Stellar (XLM) is acquiring a minority stake in the payments giant MoneyGram International (MGI).
In a new blog post, the chief executive of the Stellar Development Foundation (SDF), Denelle Dixon, says the Foundation is using cash from its treasury in a go-private transaction with the private equity firm Madison Dearborn Partners, MoneyGram’s parent company.
“It is the first investment of its kind made from SDF’s treasury. Our investment also includes a seat on its Board of Directors of which I am proud to represent SDF among a diverse group of leaders in payments, financial services, and technology on the board who are excited to lend their expertise to strengthen and guide MGI’s digital strategy.”
SDF kicked off a commercial partnership with MoneyGram in 2021. In 2022, they collaboratively launched a new service called MoneyGram Access in key remittance markets, including the Philippines, US, Canada and Kenya. The service aimed to bridge fiat money and cryptocurrencies using Stellar and the stablecoin USD Coin (USDC).
Dixon says SDF’s investment is about MoneyGram “becoming a digital-forward leader in fintech.”
“This investment positions SDF to contribute to MGI’s journey, particularly in areas such as expanding its digital business, exploring blockchain technology, and contributing to the many other ways this financial technology company enables consumers and businesses to move and manage money in nearly every country around the world.”
XLM is trading for $0.127 at time of writing. The 24th-ranked crypto asset by market cap is down more than 2% in the past 24 hours.
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