The XRP ecosystem could face more vigorous opposition to its expansion from Stellar and native cryptocurrency XLM. The company recently acquired a minority stake in payment processor MoneyGram.
XRP v. Stellar: MoneyGram Could Tip Balance In Rivalry?
Denelle Dixon, CEO of the Stellar Development Foundation (SDF), celebrated the deal in an official post. The partners have been collaborating since 2021 and, as a result, developed a crypto-backed product called MoneyGram Access.
Dixon emphasized the growth experienced by the XLM ecosystem since its partnership with MoneyGram, claiming that the Stellar network became the “leader of cash-to-crypto on and off-ramps” due to this product. The partners have focused on creating tools to provide people with access to the “digital economy.”
In that sense, investing in MoneyGram became an “easy decision,” as Dixion stated via her official X account. The SDF executive said:
The decision to invest in MoneyGram was an easy one. After years of getting to know the business and the teams, we are excited to take part in MGI’s next chapter. It’s been an awesome few years working together, and we are excited for what’s next!
The SDF decided to take on an “active” role in determining MoneyGram’s future during a recent go-private transaction with Madison Dearborn Partners. The company took the investment out of its cash treasury rather than making it via their startups fund.
From now on, and for the first time since they became partners, the SDF will occupy a seat on MoneyGram’s board of directors. Dixion will represent the SDF on the board and work to “strengthen and guide” MoneyGram’s new strategy into the digital economy.
As part of their strategy, the SBF will promote the exploration of blockchain technology, expanding the digital side of the company’s business. Thus, XLM could benefit from a new wave of innovation from MoneyGram and its partners.
The SDF CEO added the following on this possibility:
This is an exciting time for SDF and MGI, and I believe the opportunities will only grow. Continuing to build strong partnerships with organizations across the payments space puts SDF one step closer to achieving our mission of creating equitable access to financial services.
As of this writing, XLM trades at $0.13 and records no gains from today’s announcement. However, in the long run, the Stellar ecosystem could reap the benefits of this partnership.
Cover image from Unsplash, chart from Tradingview