The Stellar Development Foundation (SDF) has become a minority investor in payments provider MoneyGram International.
In an Aug. 15 X post, Stellar Development Foundation CEO and Executive Director Denelle Dixon announced the new investment saying the decision to provide funds to MoneyGram “was an easy one.”
In an accompanying blog post, Dixon added the investment was made out of the SDF’s own cash treasury using assets set aside to support the operations of the Foundation. This was used instead of Stellar’s Enterprise Fund used to invest in startups and earlier-stage companies.
The decision to invest in @MoneyGram was an easy one. After years of getting to know the business and the teams, we are excited to take part in MGI’s next chapter. It’s been an awesome few years working together, and we are excited for what’s next!https://t.co/PYAKHeXRxx
— Denelle Dixon (@DenelleDixon) August 15, 2023
While Dixon did not divulge financial details, she did state the investment gave SDF a seat on MoneyGram’s Board of Directors.
She explained the investment positions from SDF will contribute to MoneyGram by expanding its digital business and exploring blockchain technology.
“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.”
The Stellar Development Foundation established a commercial partnership with MoneyGram in 2021 but has been collaborating on tools and technology with the firm since 2019.
In November 2022, MoneyGram enabled United States-based users to buy, sell and hold cryptocurrency via its mobile app.
In July 2023, the firm announced a new account deposit service for consumers in Venezuela through its partnership with local bank Banesco.
Related: Stellar partners with UNHCR to give Ukrainian refugees cash via USDC
Stellar’s native token Stellar (XLM) did not register a reaction to the announcement, dropping 4.4% on the day to $0.129 at the time of writing, according to Cointelegraph price data.
XLM got a lift following Ripple’s partial court victory but has declined 28% since then and remains down 85% from its January 2018 all-time high of $0.875.
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