Stellar Development Foundation Boosts MoneyGram with Strategic Investment: Could it Drive XLM to $1?

• The Stellar Development Foundation (SDF) has taken on a role as a minority investor in the prominent payments provider, MoneyGram International.
• The collaboration between the Stellar Development Foundation and MoneyGram isn’t new, their commercial partnership was established in 2021.

In a thrilling development, the Stellar Development Foundation (SDF) has taken on a role as a minority investor in the prominent payments provider, MoneyGram International. This move was unveiled through an August 15th post by Denelle Dixon, the CEO and Executive Director of the Stellar Development Foundation.

Denelle Dixon shared in her post that the decision to inject funds into MoneyGram was an exceptionally straightforward one for the foundation. This endorsement showcases the confidence SDF has in MoneyGram’s potential.

To execute this investment, the SDF tapped into its own treasury, utilizing funds allocated to sustain the foundation’s operations. Interestingly, this choice involved tapping into these funds rather than relying on Stellar’s Enterprise Fund, which is typically used to invest in startups and emerging businesses. While exact financial specifics weren’t disclosed, Dixon revealed that the investment has granted the Stellar Development Foundation a seat on MoneyGram’s board of directors.

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

 A History of Collaboration
Notably, the collaboration between the Stellar Development Foundation and MoneyGram isn’t new. Their commercial partnership was established in 2021, but the two entities have been jointly developing tools and technology since 2019.

Adding to the excitement, MoneyGram took a stride into the world of cryptocurrency in November 2022. This marked the moment when users based in the United States gained the capability to buy, sell, and hold digital currencies via the MoneyGram mobile app.

In a bid to extend its reach further, MoneyGram announced a groundbreaking account deposit service for consumers in Venezuela in collaboration with local bank Banesco. This move aims to offer enhanced financial services to individuals in a region with unique economic challenges. Remarkably, the announcement did not significantly impact the price of Stellar’s native token, XLM.

Following Ripple’s partial court victory, XLM experienced a positive shift, although it has declined by 28% since then. This trajectory underscores the volatile nature of the crypto market. Despite its current value, XLM remains at an 85% deficit from its remarkable all-time high of $0.875 in January 2018.

Factors that Could Propel Stellar to Reach $1

1. Increased Utilization for Micropayments:
One factor contributing to its growth is its suitability for micropayments. Conventional payment processors like PayPal and Western Union charge high fees for small transactions, rendering them unsuitable for such payments. In contrast, Stellar’s network offers fast transactions and incredibly low fees (around 0.00001 XLM), making it an appealing option for micropayments. This capability positions Stellar to challenge traditional payment processors, potentially leading to an increase in its price.

2. Expansion in the Remittance Market
Stellar’s advantages, including its speed, scalability, and cost-effectiveness, make it well-positioned to tap into the remittance market. This sector, worth billions of dollars, involves money transfers from international migrants to their families and friends in their home countries. As the number of migrants continues to rise, Stellar’s capabilities could enable it to capture a significant share of this market, further driving its value.

3. Growing Institutional Adoption
Stellar’s suitability for cross-border payments and its collaboration with reputable financial institutions, such as the Central Bank of Brazil, Western Union, IBM, and Stripe, position it as an appealing choice for institutional adoption. Continued partnerships with such institutions could create a higher demand for Stellar’s native cryptocurrency (XLM), potentially leading to an increase in its price.

4. FOMO (Fear of Missing Out)
The psychological force of FOMO can greatly impact cryptocurrency prices. As Stellar’s value gradually rises, it can attract investors who fear missing out on potential gains. Stellar’s established status in the digital asset space and its range of practical use cases, like remittances and micropayments, could contribute to this sense of urgency, driving both demand and price higher.

5. Market Sentiment Influence
The overall sentiment within the broader crypto landscape can significantly affect individual digital assets. Positive news and developments within the cryptocurrency industry can generate a bullish sentiment. When traders feel optimistic about crypto assets, they are more likely to allocate a portion of their investment portfolio to these assets, including Stellar (XLM), potentially boosting its price.

Present Stellar Price Analysis

At the time of reporting, Stellar’s price is $0.1272, reflecting a 4.72% loss in the past 24 hours and a 10.88% decrease over the previous seven days.  In conclusion, the Stellar Development Foundation’s decision to invest in MoneyGram showcases a thrilling evolution in the crypto landscape. This strategic move is backed by a history of collaboration and holds the potential to shape the future of both entities in the ever-changing world of digital finance.