• Stellar Lumens is threatening Ripple’s dominance in cross-border transactions with a new MoneyGram partnership.
• Stellar has been working with MoneyGram for years but has only recently bought a stake in MoneyGram.

Stellar Lumens has been making headwinds after a number of positive developments in recent weeks. One key development is that the blockchain protocol has bought a minority stake in MoneyGram. The blockchain protocol focused on enabling cross-border transactions seeks to bolster its position in the financial technology sector.

The stake was bought for an undisclosed amount and has led to Denelle Dixon, CEO of Stellar Development Foundation, securing a seat on MoneyGram’s Board of Directors. This means that she is now in a position to influence decisions in the financial services company.

Stellar was able to complete the purchase using their funds in the treasury. These funds are meant for operational purposes which has impressed some experts who expected the funds to be from their emerging, new business fund. It is a clear demonstration of the strength of the project.

“This investment positions SDF to contribute to MGI’s journey, particularly in areas such as expanding its digital business, exploring blockchain technology, and contributing to the many other ways this financial technology company enables consumers and businesses to move and manage money in nearly every country around the world,” noted Dixon.

It is important to note that MoneyGram has been working with Stellar Lumens for years now. Leveraging Stellar blockchain, clients can enable digital wallets and transfer cash to crypto globally.

As part of its evolution, MoneyGram is focused on pioneering Web 3.0 and other innovative payment technologies, launching MoneyGram Access. MoneyGram Access is a platform enabled by the Stellar network that expands access to digital assets and financial services worldwide. This means it provides users in the participating locations with access to cash-to-crypto on and off-ramps.

The relationship between the two parties is now stronger than ever after the recent investment.

Austin Arnold of Altcoin Daily who has hailed the investment has called it a match made in heaven. MoneyGram in particular which is looking to keep up with competing financial service providers has a unique opportunity to utilize blockchain technology to jump ahead of the line.

This seems like a match made in heaven because Stellar’s aim … is to make cross-border payments faster and cheaper using blockchain technology,

The expert further believes that Stellar now threatens the global dominance st by Ripple in cross-border transactions. “Everybody knows the names Ripple and XRP, especially because they won the lawsuit with … the SEC. I think Stellar is coming for them, I’ll keep Stellar on my radar,” Arnold added.

Interestingly, MoneyGram had initially partnered with Ripple before the alliance was terminated when the SEC lawsuit was brought forth, leading to MoneyGram distancing itself.

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