Stellar Network Announces Investment in MoneyGram
- Stellar Network and MoneyGram have previously partnered to improve blockchain payments.
- The investment in MoneyGram also gives SDF a seat on MoneyGram’s board of directors.
The Stellar Development Foundation (SDF), which is the company behind the Stellar Network, has invested in MoneyGram International. SDF said in a statement on Tuesday that it invested funds from its own cash treasury to become a minority shareholder in MoneyGram.
Today’s news expands on an ongoing partnership between SDF and MoneyGram. Both companies previously collaborated to promote cryptocurrency payments and introduce a cash-to-crypto service.
Commenting on SDF’s investment in MoneyGram, SDF CEO, and Executive Director Denelle Dixon said in a statement:
During the recent go-private transaction with Madison Dearborn Partners (MDP), SDF became a minority investor in MGI. The investment was made out of SDF’s own cash treasury, the assets set aside to support the operations of the SDF, rather than the Enterprise Fund, a fund to invest in startups and earlier-stage companies. It is the first investment of its kind made from SDF’s treasury.
Dixon further noted that the investment would support the growth of MoneyGram’s digital businesses and also provide SDF with a seat on MoneyGram’s board of directors.
Dixon also hailed Stellar’s partnership with MoneyGram as one of the reasons for the growth of the XLM ecosystem. In a Twitter post, the Stellar executive claimed the Stellar network became the “leader of cash-to-crypto on and off-ramps” thanks to its partnership with MoneyGram. She added that MoneyGram’s contribution to Steller’s growth made it an “easy” choice to invest in the payment company.
Stellar is one of the growing lists of crypto projects using blockchain to promote faster cross-border transactions. Its XLM cryptocurrency is currently ranked 22nd in terms of its market cap.