Stellar digs into its reserves to acquire a minority position in MoneyGram
August 16, 2023 11:06 AM
Stellar Development Foundation invested an undisclosed amount of money in MoneyGram in exchange for a board seat.
MoneyGram International is pleased to announce that the Stellar Development Foundation (SDF) has joined the company as a minority investor.
Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, revealed the new investment in an X post on August 15. She called the choice to grant cash to MoneyGram "an easy one."
Dixon noted in a blog post→ that the money for the investment came from the SDF's general funds, not from donor contributions. It replaced Stellar's Enterprise Fund, which had previously funded early-stage and startup businesses.
Dixon did not provide any financial details, but she did say that SDF now has a voice on MoneyGram's board of directors thanks to the investment.
She elaborated on how MoneyGram would benefit from the SDF investments by developing its digital business and investigating blockchain technologies.
"Most notably, it symbolizes a recommitment from MGI, one of the world's top global financial technology companies, to grow into a digital-forward powerhouse in fintech."
Stellar Development Foundation and MoneyGram have been working together on tools and technologies since 2019 and formed a business collaboration in 2021.
MoneyGram introduced in-app cryptocurrency trading and storage in the United States in November 2022.
With the help of local bank Banesco, the company introduced a new account deposit service for Venezuelan users in July 2023.
Stellar (XLM), Stellar's native coin, fell 4.4% on the day to $0.129 as of this writing, despite the announcement. This is according to data provided by CMC.
Despite a brief uptick after Ripple's partial court victory, XLM is now down 28% and is still down 85% from its all-time high in January 2018.