The Stellar Development Foundation (SDF) has made a strategic investment in MoneyGram International, which resulted in obtaining a coveted seat on the firm’s Board of Directors.
Building On A Strong Partnership
The Stellar Development Foundation, responsible for expanding the Stellar network, announced a substantial investment in MoneyGram, a key player in the money transfer sector. This decision builds upon their existing commercial partnership, which was established two years ago. Although the SDF established a commercial partnership with MoneyGram in 2021, the two have collaborated on tools and technology since 2019.
Back then, MoneyGram joined forces with SDF to enable cryptocurrency payments and to introduce a cash-to-crypto service. Late last year, the payments firm announced plans to enable users to buy, sell, and hold crypto assets.
Strategic Investment from SDF
Denelle Dixon, the CEO and Executive Director of SDF, clarified in a recent blog post that the investment was made from the SDF’s cash treasury, distinct from the Enterprise Fund, which typically supports startups and early-stage companies. This marks the first instance of such an investment being drawn from SDF’s treasury. Dixon emphasized that this strategic move aligns with SDF’s core mission and is a testament to MoneyGram’s commitment to digital evolution.
A Leap Towards Digital Advancement
This investment is expected to bring about substantial benefits for both parties involved. MoneyGram, a prominent player in global financial technology, is set to expand its digital reach with the support of SDF’s investment. Moreover, this collaboration will pave the way for the exploration of blockchain technology in the realm of money transfers.
Dixon highlighted the significance of this partnership by stating,
“Most importantly, it signifies a rededication from MGI, one of the world’s leading global financial technology, to becoming a digital-forward leader in fintech.”
Gaining a Seat at the Table
The most noteworthy outcome of this investment is SDF securing a seat on MoneyGram’s Board of Directors. This move not only solidifies their partnership but also positions SDF to actively contribute to MoneyGram’s strategic decisions and digital business expansion.
Although the exact amount of the investment remains undisclosed, Dixon affirmed that this collaboration underscores SDF’s commitment to bridging the gap and democratizing access to financial services.
In her own words,
“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.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.