Cody McGrath 
MoneyGram launched its stablecoin-powered payment channel on Friday, allowing customers to transfer USD Coin (USDC) payments to destinations around the world.
Circle and MoneyGram announced Friday that the service will be available in many significant remittance markets, including Canada, the United States, Kenya, and the Philippines.
By the end of June, global cash-out capabilities will be accessible. The USDC transfer service will have no fees for the first 12 months to encourage adoption.
MoneyGram’s new transfer service, as reported by Cointelegraph, is based on the Stellar (XLM) blockchain and allows Stellar wallet users to send USDC to recipients all over the world.
The goal of the service is to bridge the gap between digital assets and physical fiat money while also demonstrating the utility of crypto payments.
Denelle Dixon, CEO of the Stellar Development Foundation, said the new transfer channel will allow the world’s unbanked population to participate in the digital economy for the first time.
While figures vary, the World Bank believes that 1.7 billion adults are unbanked, meaning they do not have access to a financial institution’s account.
Blockchain technology has been proposed as a potential solution to financial exclusion, whether through decentralized finance, central bank digital currencies, or crypto-powered transfer and settlement services.
In related news, Circle stated on Friday that it has reached a binding deal to buy CYBAVO, a crypto infrastructure platform that it hopes would help USDC adoption.
By market capitalization, Circle’s USDC is the second-largest stablecoin, with a one-to-one dollar peg backed by cash and short-term US Treasury bonds.