XRP Rival Stellar Lumens (XLM) Just Bought Stake in Cash Transfer Giant MoneyGram

The Stellar Development Foundation, a foundation that competes with XRP, has acquired a minority stake in MoneyGram International, a payments company.

In a recent blog post, the CEO of SDF, Denelle Dixon, announced that the foundation had used funds from its treasury to conduct a go-private transaction with Madison Dearborn Partners, the private equity firm that owns MoneyGram.

This investment marks the first of its kind made from SDF’s treasury.

Additionally, SDF will have a seat on MoneyGram’s Board of Directors, and Dixon is honored to represent the foundation among a diverse group of leaders in payments, financial services, and technology who will guide and strengthen MGI’s digital strategy.

In 2021, SDF entered into a commercial partnership with MoneyGram. Together, in 2022, they launched a new service called MoneyGram Access in several important remittance markets, including the US, Canada, Kenya, and the Philippines.

The primary goal of this service was to bridge the gap between fiat money and cryptocurrencies by utilizing Stellar and the stablecoin USD Coin (USDC).

According to Dixon, SDF’s investment in MoneyGram reflects their desire to help the company become a leader in fintech by embracing digital technologies.

This investment will allow SDF to contribute to MGI’s growth in areas such as expanding their digital business, exploring blockchain technology, and providing consumers and businesses with new ways to move and manage money around the world.

At the time of writing, XLM is trading for $0.127. This cryptocurrency is currently ranked 24th by market cap and has experienced a decline of over 2% in the past 24 hours.

In other recent news, a crypto trader with a large following has issued a warning to Bitcoin (BTC) investors as the flagship crypto asset struggles to break through a significant resistance level. We suggest that you check out the original article we shared earlier to learn more details about this.