Stellar Development Foundation Invests in MoneyGram

The Stellar Development Foundation (SDF) has invested in MoneyGram International as a minority shareholder.

Denelle Dixon, CEO and Executive Director of Stellar Development Foundation, announced the new investment in an August 15 X post, stating that the decision to provide funds to MoneyGram “was an easy one.”

In an accompanying blog post, Dixon explained that the investment was made from the SDF’s financial treasury using assets designated to support the foundation’s operations.

This was utilized in lieu of Stellar’s Enterprise Fund, which was used to invest in startups and early-stage enterprises.

Dixon stated that the investment granted SDF a seat on MoneyGram’s board of directors, although she did not provide specific financial information.

She explained that the SDF investment positions will help MoneyGram expand its digital business and investigate blockchain technology.

“Most importantly, it signifies a rededication from MGI, one of the world’s leading global financial technology, to becoming a digital-forward leader in fintech.”

The Stellar Development Foundation and MoneyGram formed a commercial partnership in 2021 but have collaborated on tools and technologies since 2019.

MoneyGram enabled users in the United States to buy, sell, and possess cryptocurrency via its mobile app in November 2022.

In July 2023, the company announced a new account deposit service for Venezuelan consumers in partnership with Banesco, a local bank.

Stellar’s native token, Stellar XLM, fell 4.4% on the day to $0.129 at the time of writing.

XLM received a boost following Ripple’s partial court victory, but it has declined 28% since then and is still down 85% from its all-time peak of $0.87 in January 2018.