Stellar announces investment in MGI via Development Foundation
Stellar has announced that it is investing in MoneyGram International, also known as MGI in short, through its Development Foundation. Stellar Development Foundation, often referred to as SDF, will hail the investment opportunity just 2 years after they executed their commercial agreement.
Stellar and MoneyGram’s collaboration dates back to 2019. That is when Stellar started building the tools, which turned out to be MoneyGram Access. This came in handy in making Stellar a leader in the industry where the cash-to-crypto on and off-ramp services were rare but also immense. It helped both teams to make the services accessible to a larger number of people who wanted to be on board the digital economy.
The reason why their historical collaboration has taken center stage at the moment is because that is the same thing that enabled Stellar to gain access to the future plans of MoneyGram. Needless to say, they were pretty impressed with what MoneyGram had the potential to do in terms of digital transformation and execution. That gave them the confidence to grab any opportunity which came their way.
Years later and the investment aligns with that historic judgment. Stellar Development Foundation will now take a more active role in MoneyGram International. Possibly, an even more active role if another opportunity comes to light.
Stellar Development Foundation is now officially a minority investor, courtesy of the private transaction with MDF, short for Madison Dearborn Partners. The investment was rolled out of the Foundation’s own cash treasury. This makes the investment one of its kind. Another option was to leverage the Enterprise Fund. That is something that is always directed to companies and startups in the early stages.
MoneyGram will use the funds to expand its digital business, explore the potential of blockchain technology, and find ways to grow the company. The investment made to MoneyGram International has also granted the Foundation a spot on the Board of Directors. It also has leaders from the financial, technological, and payment industries.
Stellar has called this an exciting time for both companies, adding that there is definitely an opportunity for growth. Stellar and MoneyGram are now looking forward to the utilization of the investment and building more such partnerships in the future with the goal it puts Stellar Development Foundation a step closer to achieving equitable access to financial services.
Stellar has simultaneously found a way to engage with the community. It recently announced hosting a design contest from September 26, 2023, to September 28, 2023. The design contest is titled Meridian 2023. The participant who wins the contest will take home an unforgettable trip to Meridian 2023 which is set to happen in Madrid in September 2023.
Every participant will be tasked with creating a sticker design exclusively for the conference attendees. The design must center around Unlocking Human Potential by keeping blockchain technology in mind.
