Moneygram, a US-based payments and remittance company, has announced the integration of USDC, a dollar-pegged stablecoin, as a settlement asset for its cash-to-crypto and crypto-to-cash program. The company will allow users to exchange USDC for cash and vice versa in certain markets, including Canada, Kenya, the Philippines and the US, with the expectation of releasing it globally later.
Moneygram implements USDC ramp program
Traditional remittance companies are now trying to include cryptocurrencies in their operations and offer more cryptocurrency-related services. Moneygram, a payments and remittance company, recently announced that it would begin allowing its users to list USDC, a dollar-pegged stablecoin, as part of its cryptocurrency on and off program. The company will use the Stellar network as a settlement layer to carry out the USDC transactions necessary for the program to operate.
The program established that customers who need to exchange USDC for fiat currencies, or who are selling and looking to acquire cryptocurrencies with their fiat currencies, will be able to use the Moneygram app to arrange an exchange and will be able to go to any of the company’s offices in Canada. , Kenya, the Philippines and the United States to complete the operation.
For Moneygram, this movement is about bringing financial inclusion to the unbanked and underserved in some markets that have difficulty opening bank accounts for their citizens. One of the problems this program seeks to solve, Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, said:
Today, nearly 2 billion people depend on cash for their livelihood, with no options for accessing the digital economy. At the same time, a persistent pain point for native cryptocurrency users is shorting cryptocurrency quickly and reliably. The innovative nature of this service is how it solves the problems of a variety of users with different needs across the world.
The service is now available in the selected markets mentioned above, and Moneygram has stated that it is targeting global withdrawal functionality by the end of this month. This program is part of the partnership Moneygram signed with the Stellar Development Foundation last October, when the company announced that it would begin allowing customers to send remittances denominated in USDC.
This type of cryptocurrency alliance is nothing new for Moneygram, which partnered with Ripple, another payments and cryptocurrency company, to test use of its remittance solutions in 2018.