International money-transfer firm MoneyGram has entered into an agreement with blockchain network Stellar to support instant money transfers using the USD Coin (USDC) stablecoin.

Why should we care?
The deal marks a new crypto partnership chapter for MoneyGram after it severed a tie-up with blockchain firm Ripple in February as Ripple faced legal battles with the Securities and Exchange Commission (SEC). As part of the new arrangement that will roll out globally next year, consumers will be able to convert cash into and out of USDC for pickup at MoneyGram locations. Digital wallets connected to the Stellar network with access to MoneyGram's network will allow for cash funding and payout in local currency for consumers using USDC, as well as near-instant settlement capabilities. United Texas Bank will be the settlement bank between Circle – the principal operator of USDC – and MoneyGram. “Thanks to the reach of MoneyGram's services and the speed and low cost of transactions on Stellar, a new segment of cash users will be able to convert their cash into and out of USDC, giving them access to fast and affordable digital asset services that may have previously been out of reach,” Denelle Dixon, CEO and executive director of the Stellar Development Foundation, said in a statement. Alex Holmes, MoneyGram chairman and CEO, said that as crypto and digital currencies grow in prominence, the company is “especially optimistic” about the potential for stablecoins to be used as a way to streamline cross-border payments.