Alex Holmes — the CEO of remittances big Moneygram International Inc. MGI — mentioned that the agency is “trying to be a bridge from the crypto world to the fiat world.”
What Happened: MoneyGram is getting ready to launch a service primarily based on the Stellar XLM/USD blockchain which might leverage stablecoins to hold out remittances, in line with a Sunday Bloomberg report. During an interview, Holmes admitted that “the world of crypto and the world of fiat are not really compatible today,” however promised that the agency is attempting to maneuver the 2 nearer.
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When MoneyGram’s new service launches, the platform will likely be utilizing USD Coin (CRYPTO: USDC) — the stablecoin collectively launched by fintech Circle and crypto alternate Coinbase Global Inc. COIN — on the Stellar blockchain to shortly transfer worth across the globe. The firm would then enable customers to money out the stablecoins for fiat foreign money via its personal community.
The transfer comes amid heightened regulatory scrutiny after main cryptocurrency Terra LUNA/USD collapsed and misplaced over 97% of its worth as its native stablecoin TerraUSD UST/USD fell to underneath $0.30. The losses amounted to just about $24 billion of capital evaporating from the 2 tokens’ market capitals, all inside 24 hours.
While the autumn of TerraUSD precipitated fears over the collapse of different stablecoins, Benzinga’s evaluation highlighted that USD Coin has very totally different implementation implies that it couldn’t fall in the identical approach TerraUSD did — at the very least not for a similar purpose.