Stellar, a prominent rival to Ripple Labs, has made a strategic investment in the leading payment giant MoneyGram International (MGI), securing a seat on its board of directors in the process.
This move not only highlights Stellar’s commitment to the partnership but also intensifies the rivalry between Stellar and Ripple in the competitive blockchain payments sector.
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Denelle Dixon, CEO of the Stellar Development Foundation (SDF), took to Twitter to announce the investment in MoneyGram, expressing enthusiasm for what lies ahead. While the exact investment amount remains undisclosed, SDF made the investment directly from its cash treasury, separate from its Enterprise Fund reserved for start-up investments.
The decision to invest in @MoneyGram was an easy one. After years of getting to know the business and the teams, we are excited to take part in MGI’s next chapter. It’s been an awesome few years working together, and we are excited for what’s next!https://t.co/PYAKHeXRxx
— Denelle Dixon (@DenelleDixon) August 15, 2023
Expanding Influence on MoneyGram’s Board
The investment has granted Stellar a seat on MoneyGram’s prestigious Board of Directors. Representing SDF, Denelle Dixon joins a distinguished group of global industry leaders with expertise in payments and financial services, including MoneyGram’s CEO, Alex Holmes. With this new alliance, the board aims to leverage its collective experience to further enhance MoneyGram’s business and strengthen its market-leading cross-border capabilities.
Potential for Business Growth
MoneyGram’s CEO, Alex Holmes, expressed optimism about the collaboration, emphasizing that as a private company guided by the new board, MoneyGram is well-positioned to reinforce its status as a leading global fintech platform connecting communities worldwide. Given the combined expertise of the board members, MoneyGram aims to advance its position in the industry and expand its reach.
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Stellar and Ripple Rivalry
The rivalry between Stellar and Ripple dates back to their shared origins. Launched by Ripple’s co-founder, Jed McCaleb, in 2014, Stellar has emerged as a formidable player in the blockchain payments space. Utilizing cutting-edge payment technologies, Stellar has solidified its position as a significant provider in the industry, competing directly with Ripple.
MoneyGram’s Partnership Shift
MoneyGram’s partnership with Stellar comes on the heels of its termination of collaboration with Ripple in 2021, with both parties opting not to disclose the reasons. Speculation suggests that this decision may be connected to the ongoing lawsuit brought against Ripple by the SEC.
Since the establishment of their partnership, SDF and MoneyGram have engaged in various initiatives to drive innovation in the payment landscape.
Expanding Access to Cryptocurrency Solutions
In a recent development, the integration of the WhiteBit crypto exchange into MoneyGram Access has enabled Ukrainians to access MoneyGram’s crypto-to-cash off-ramps solution. This collaboration between SDF and MoneyGram illustrates their shared commitment to empowering users with convenient and secure cryptocurrency solutions.
Stellar’s investment in MoneyGram and subsequent representation on its board of directors signifies the growing influence of Stellar in the payment industry and further intensifies the rivalry with Ripple.
With a renewed focus on advancing cross-border capabilities and leveraging collective expertise, MoneyGram is poised to strengthen its position as a leading global fintech platform under the guidance of its new board.
The collaboration between SDF and MoneyGram continues to drive innovation and expand access to cryptocurrency solutions, fostering a dynamic ecosystem that benefits users worldwide.
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