The Stellar Development Foundation (SDF) has taken on the role of a minority investor in MoneyGram International, a prominent payments provider. This new investment was announced by Denelle Dixon, the CEO and executive director of the Stellar Development Foundation, on August 15. Dixon described the decision to invest in MoneyGram as a straightforward one.
In a related blog post, Dixon elaborated that the funding for this investment was drawn from assets reserved within the SDF's own cash pool, dedicated to supporting the foundation's operational activities. This investment marks a shift from the Stellar Enterprise Fund, which was focused on support porting startups and early-stage companies. Although the exact financial terms were not disclosed, Dixon noted that the investment has secured a seat for SDF on MoneyGram's board. This strategic investment, as Dixon emphasized, will assist MoneyGram in expanding its digital operations and exploring the potential of blockchain technology.
The connection between the Stellar Development Foundation and MoneyGram dates back to 2019, with a formal business partnership established in 2021. This collaboration has been primarily centered around the development of tools and technology. Notably, MoneyGram has plans to allow user s in the United States to engage in cryptocurrency activities such as buying, selling, and holding through its mobile app starting in November 2022. The company also recently announced a partnership with a local bank, Banesco, to provide an account deposit service for consumers in Venezuela la.
However, MoneyGram's shares did not respond positively to the announcement of the Stellar Development Foundation's investment. On the day of the announcement, shares experienced a decline of 4.4 percent, trading at $0.129, according to price data. The native token of the Stellar network, XLM, had seen an upswing following Ripple's partial court victory but has since experienced a 28 percent decrease. Presently, it remains 85 percent lower than its all-time high of $0.875 reached in January 2018.
