Stellar dips into treasury to buy minority stake in MoneyGram

The Stellar Development Foundation (SDF) has go a number capitalist successful payments supplier MoneyGram International.

In an Aug. 15 X post, Stellar Development Foundation CEO and Executive Director Denelle Dixon announced the caller concern saying the determination to supply funds to MoneyGram “was an casual one.”

In an accompanying blog post, Dixon added the concern was made retired of the SDF's ain currency treasury utilizing assets acceptable speech to enactment the operations of the Foundation. This was utilized alternatively of Stellar’s Enterprise Fund utilized to put successful startups and earlier-stage companies.

The determination to put successful @MoneyGram was an casual one. After years of getting to cognize the concern and the teams, we are excited to instrumentality portion successful MGI’s adjacent chapter. It’s been an awesome fewer years moving together, and we are excited for what’s next!https://t.co/PYAKHeXRxx

— Denelle Dixon (@DenelleDixon) August 15, 2023

While Dixon did not divulge fiscal details, she did authorities the concern gave SDF a spot connected MoneyGram's Board of Directors.

She explained the concern positions from SDF volition lend to MoneyGram by expanding its integer concern and exploring blockchain technology.

“Most importantly, it signifies a rededication from MGI, 1 of the world’s starring planetary fiscal technology, to becoming a digital-forward person successful fintech.”

The Stellar Development Foundation established a commercialized concern with MoneyGram successful 2021 but has been collaborating connected tools and exertion with the steadfast since 2019.

In November 2022, MoneyGram enabled United States-based users to buy, merchantability and clasp cryptocurrency via its mobile app.

In July 2023, the steadfast announced a caller relationship deposit work for consumers successful Venezuela done its concern with section slope Banesco.

Related: Stellar partners with UNHCR to springiness Ukrainian refugees currency via USDC

Stellar’s autochthonal token Stellar (XLM) did not registry a absorption to the announcement, dropping 4.4% connected the time to $0.129 astatine the clip of writing, according to Cointelegraph terms data.

XLM got a lift pursuing Ripple’s partial tribunal triumph but has declined 28% since past and remains down 85% from its January 2018 all-time precocious of $0.875.

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