MoneyGram partners with Stellar to accelerate currency transfers, XLM price climbs 14%

Cross-border payments company MoneyGram International has partnered with Stellar Development Foundation and fintech firm Circle to accelerate money transfers and payment settlements.

MoneyGram to bridge crypto assets and fiat

Stellar Development Foundation, a non-profit organization that supports the development of the Stellar blockchain, will help integrate its network into MoneyGram to enable cash funding and cryptocurrency payouts in local currencies for customers.

MoneyGram will use Circle’s USDC to settle payments and convert payouts to the customer’s local currency. According to the payment firm’s CEO, Alex Holmes, the settlement process would be able to happen near real-time using the US dollar-pegged stablecoin.

The cross-border payments company has one of the largest money-transfer service providers, enabling customers to transfer funds across over 200 countries. The United Texas Bank will act as the settlement bank between Circle and MoneyGram. 

The new service is expected to launch by the end of 2021 in selected jurisdictions. Other international destinations will be included in its rollout in 2022. Holmes added that MoneyGram is enabling consumers to “bridge crypto assets and fiat currency” and that the firm “can be a pioneer and a leader in that opportunity.”

Stellar wallet holders would be able to access physical locations to convert USDC to cash, bringing the network into the physical world. 

Denelle Dixon, CEO and executive director of the Stellar Development Foundation, stated that many cash users would gain access to crypto services that have been previously out of reach.

XLM price skyrockets as Stellar bulls gain confidence

Following the partnership announcement, XLM price shot up by nearly 14% as investors became bullish on Stellar.

XLM price formed an ascending triangle pattern on the 4-hour chart and eventually exceeded its optimistic target of a 10% climb. 

Currently, Stellar Lumens is searching for support and may discover an immediate foothold at the 78.6% Fibonacci retracement level at $0.3454.

The Relative Strength Index (RSI) suggests that XLM price may be slightly overbought at the moment, which could potentially trigger a minor retracement. 

XLM/USDT 4-hour chart

Further selling pressure may push XLM price lower toward the upper boundary of the triangle pattern, which coincides with the 61.8% Fibonacci retracement level at $0.3260. The following line of defense will appear at the 200 four-hour Simple Moving Average (SMA) at $0.3147 before slumping further toward the 50% Fibonacci retracement level at $0.3124.

If the bulls continue to take control over XLM price, Stellar may target the September 7 high at $0.3867 next.