Stellar Foundation Approached MoneyGram for Acquisition

by in Blockchain News

Stellar MoneyGram

As reported by Bloomberg on Wednesday, Stellar Foundation, a non-profit organization standing behind the development of the Stellar network and the cryptocurrency XLM, contacted money transfer company MoneyGram on a possible purchase.

Related: Stellar Development Foundation invested $15 million in Airtm

Bloomberg informs the news was provided by unnamed people connected with the subject. According to them, Stellar partners with global private equity firm Advent International for the deal. There isn't any final decision yet.

Both Stellar and MoneyGram carry out cross-border payments. The crypto network was founded in 2014. One of the founding members, Jed McCaleb previously founded the company Ripple and was its Chief Technological officer till 2013.

XLM, the native coin of Stellar has seen over an 11% price increase after the news was announced. Currently, XLM ranks 17 with a $12.3 B market cap and trades at around $0.24.

In November 2019, payment protocol Ripple bought a 10% stake in Moneygram after investing $50 M in the money transfer service. However, in March 2021, the companies canceled the agreement amid the started lawsuit of the US SEC against Ripple.