According to Blockchain News, the Stellar Development Foundation (SDF) has recently become a minority investor in MoneyGram International (MGI) during its go-private transaction with Madison Dearborn Partners (MDP).
In 2019, realizing that the potential of the fiat-to-crypto market at that time was huge, MoneyGram joined hands with Ripple by letting the crypto giant invest a sum of money up to 50 million USD to actualize its above dream.
However, by 2021, this investment was withdrawn due to some legal proceedings with the US Securities and Exchange Commission.
By October 2021, MoneyGram and Stellar started working together and launched a crypto-related pilot program. In November of that year, several reports suggested that Stellar was interested in acquiring MoneyGram. And now that information is starting to sound accurate as SDF becomes a minority investor of MoneyGram.
MoneyGram’s consumer-centric goals enable family and friends to send money quickly, securely, and at reasonable prices based on a unique API platform system in over 200 countries.
MoneyGram utilizes a large-scale, modern technology platform to serve millions of people worldwide each year. Collaboration with major fintech companies around the world also makes MoneyGram a leading fintech company. With a strong culture of innovation and a relentless focus on utilizing technology to deliver the world's best customer experience, MoneyGram is leading the evolution of cross-border payment platforms.
Up to now, the competition between MoneyGram and Western Union in the remittance and payment market is like the competition between Samsung and Apple in the technology village of mobile and e-wallet payments.
If Apple relies on its inherent brand and very specific customer groups, Samsung chooses a direction to dominate the media with unique ways for the brand to be spread we will never see Apple Livestream offers on TikTok and with Samsung it's the opposite).
Moreover, Samsung uses the Android operating system, which is compatible with all other phone lines, which will make them capable of attracting a lot of technology followers as well as further expanding their customer base to Gen Z and Gen Alpha users.
That is the same in the market of remittances and international payments, strong communication on channels and social platforms related to young people will help MoneyGram have an outstanding advantage in converting to payment as well as remittance in crypto.
According to a source from Blockchain News, strategic investment aligns SDF's mission with fostering access to the financial services page. It also enables SDF to play a pivotal role in MoneyGram's digital journey, especially in areas like digital business expansion, blockchain technology exploration, and other fintech endeavors.
However, if you sequence the events that have been and are taking place, it is possible to partly guess that SDF's goal of acquiring fiat payments and remittances is also.
As evidenced by a source from Blockchain News, SDF has secured a seat on MoneyGram's Board of Directors. Denelle Dixon expressed her pride in representing SDF on the board, which comprises a diverse set of leaders from the realms of payments, financial services, and technology.
In short, this investment in MoneyGram helps these two financial behemoths achieve their goal of controlling remittances and international payments not just in fiat but also in crypto. MoneyGram can not only speed the evolution of its money transfer technology with the support of this massive Trust Wallet owner but also steadily assert its leadership position in the international remittance sector by fiat.