Ripple rival Stellar has received a seat on MoneyGram’s board of directors after investing an undisclosed amount in the leading payment giant.
Stellar, a rival of Ripple Labs, has invested in payments giant MoneyGram International (MGI). In a tweet yesterday, Denelle Dixon, the CEO of Stellar Development Foundation (SDF), stated that the company made an easy decision to invest in MoneyGram.
“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!” she added.
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
Dixon attached a link to the tweet, providing further details about SDF’s investment in MoneyGram.
SDF’s Investment in MoneyGram
According to the press release, SDF invested in MoneyGram during the latest go-private transaction with Madison Dearborn Partners (MDP). Notably, SDF made the investment directly from its cash treasury rather than its Enterprise Fund.
It bears mentioning that the SDF cash treasury is set aside to support the company’s activities, while the enterprise fund is used to invest in start-ups. Both MoneyGram and Stellar did not disclose the investment amount.
SDF Joins MoneyGram’s Board of Directors
Interestingly, the investment has given SDF a seat on MoneyGram’s Board of Directors. Dixon will be representing SDF on MoneyGram’s board. The board comprises global industry leaders with relevant experience in payments and financial services.
According to the press release, the MoneyGram board has ten members, including top industry experts like Dixon and MoneyGram’s CEO Alex Holmes.
The announcement noted that the new board will leverage its expertise to further enhance MoneyGram’s business and market-leading cross-border capabilities.
Commenting on the development, Holmes remarked:
“Now, as a private company and with the guidance of our new Board of Directors, MoneyGram is well-equipped to strengthen its position as a leading global fintech platform that connects the world’s communities.”
Stellar and Ripple’s Rivalry
Meanwhile, Stellar has remained a major rival to Ripple. Recall that Stellar was launched in 2014 by Ripple’s co-founder Jed McCaleb. Since its inception, the Stellar team has been rolling out cutting-edge payment technologies, solidifying its position as a major blockchain payments provider.
MoneyGram entered into an official partnership with SDF in 2021 after ending its collaboration with Ripple. Neither MoneyGram nor Ripple disclosed the reason for the termination but pundits speculate it is due to the SEC’s lawsuit.
SDF and MoneyGram have worked on various initiatives since their partnership.
Last month, SDF gave Ukrainians access to MoneyGram’s crypto-to-cash off-ramps solution by integrating the WhiteBit crypto exchange into MoneyGram Access.