XLM token spiked over 13% after the native cryptocurrency’s blockchain platform announced a partnership with international remittance service MoneyGram. The deal will enable users to send money using Circle’s stablecoin, USD Coin (USDC), and convert directly to and from fiat.
Stellar blockchain’s native token, Stellar Lumens (XLM) closed the day with a 13% price rise after opening the day at $0.323 and closed at $0.363 with a daily high of $0.364. Over the past week, the cryptocurrency made a stunning recovery with not only 30% gains but also breaking out of the downtrend's chains.
The recent price surge comes following the announcement that the cross-border payment giant MoneyGram has integrated support for allowing crypto wallets connected to the Stellar Network to access its platform.
Not only that, but MoneyGram will also enable “near-instant backend settlement”, account funding, and local fiat withdrawals using the USDC stable token. United Texas Bank will act as the settlement bank to complete the process within the regulatory framework.
The partnership is expected to launch at the end of 2021 in selected jurisdictions, with an expanded international rollout planned next year. Denelle Dixon, the CEO and executive director of the Stellar Development Foundation said:
"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.”
This is not the first time, MoneyGram has worked with a blockchain company. In 2019, Moneygram and Ripple announced a partnership to use the RippleNet as part of the exchange settlements process for international remittances while receiving financial incentives in the form of XRP, in exchange for giving Ripple an equity stake in the company.
The partnership lasted nearly two years after the SEC filed a legal proceeding against Ripple, accusing it of using XRP as a way to issue unregistered securities.