Stellar acquired the MoneyGram stake during the fintech’s privatization this year.

Stellar, a cross-border cryptocurrency payments network, has strategically invested in MoneyGram International, a prominent money transfer company, solidifying their years-long collaboration. Although the exact monetary value remains undisclosed, this move accentuates Stellar’s dedication to digital advancements in the fintech realm.

MoneyGram, recognized for its association with Ripple, has partnered with Stellar in the past, resulting in the creation of a cash-to-crypto service. (Decrypt)

Stellar’s investment stems from its belief in MoneyGram’s management, board, and future objectives. The collaboration aims to bolster MoneyGram’s digital ventures and enhance accessibility for unbanked populations through digital-centric experiences.

Stellar said in a blog: “MoneyGram’s vision for its digital transformation and execution capabilities gave us confidence that if an opportunity to take a more active role in MGI’s future ever arose, we would take it. Today, I can share that opportunity came to pass. 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.”

Earlier this year, Chicago-based private equity firm Madison Dearborn Partners acquired MoneyGram International and delisted the company from the Nasdaq exchange.

The primary focus of the investment by Stellar encompasses amplifying digital operations, exploring blockchain technology, and contributing to MoneyGram’s mission of facilitating global money movement and management.

Stellar’s involvement is a significant stride towards reinforcing MoneyGram’s position as a frontrunner in the digital fintech landscape. Notably, Stellar’s CEO and executive director, Denelle Dixon, has secured a seat on MoneyGram’s Board of Directors, further cementing their partnership.

The alliance’s origin traces back two years, during which Stellar aided MoneyGram in launching a cash-to-crypto service. This strategic investment not only underscores the commitment to digital innovation but also underscores MoneyGram’s trajectory towards becoming a digital-forward leader in the financial technology sector.

Related Story:  MoneyGram Launches Crypto Transactions Via Its App