The new payment service, that is mainly powered by the Stellar blockchain, will be enabling USDC settlement with MoneyGram in near-real-time.
MoneyGram, the Cross-border transfer service has just launched its new payment channel powered by the stablecoin this Friday, giving users the ultimate ability to send USDC payments to worldwide that can be withdrawn as cash by recipients.
According to what has been announced by Circle and MoneyGram announced this Friday, the service will be available across many key remittance markets including the United States, Canada, Philippines and Kenya. Moreover, the global cash out will be functioning by the end of June this year, and in order to encourage the adoption, the transfer service of the USDC will require 0 fees for the first 12 months.
The USDC new transfer service was built on the Stellar blockchain and it allows users to send USDC to recipients worldwide, according to what Cointelegraph reported. This service is aimed to bridge the gap between both the physical cash currency and digital assets, as well as demonstrate the utility of crypto payments.
Denelle Dixon, the CEO of Stellar Development Foundation said that the new transfer channel will be helping the world’s unbanked population access the digital economy for the first time ever. While the estimations vary, the World Bank states that 1.7 billion adults are unbanked, which in return means that they laxk access to an account at a financial institution.
However, in an related news, Circle did announce this Friday that it had a definitive agreement to acquire CYBAVO, the crypto infrastructure platform, that it truly believes that it will further pave the way for USDC adoption.
USDC is considered as the second largest stablecoin by market cap and it maintains a one-for-one peg in US dollar backed by cash and short-dated U.S. Treasuries.
By the time of writing this article, USDC is trading at exactly $1.00 in green.