The Stellar Development Foundation has already turned out to be quite a minority investor in MoneyGram International, a payments provider. In a 15th August post made on X, Denelle Dixon, the Stellar Development Foundation CEO, and the Executive Director, went on to announce the new investment- stating that the decision to provide the funds to this platform was quite an easy decision.
In a blog post that accompanied this, Dixon also added that the investment had been made from the cash treasury of SDF using the assets that had been set aside in order to support the operations of this foundation. This was also previously used instead of the Enterprise Fund of the company which is usually used to invest in earlier-stage companies and startups.
Stellar’s Announcement Hasn’t Been Able To Stop Its Dip
While the CEO of Stellar did not divulge any of the financial details, she further stated that the investment gave the company a seat on the board of directors of the company. She then went on to explain that the investment positions held by SDF would be contributing heavily to MoneyGram by expanding the digital business, as well as exploring blockchain technology.
The Stellar Development Foundation further established a commercial partnership with MoneyGram in 2021, but since then has been collaborating on technology and tools with the firm since 2019. In November of 2022, MoneyGram also enabled users based in the United States to buy, sell, and then hold cryptocurrency through the mobile app.
The native token of Stellar, Stellar, also did not register any reaction to this announcement, as it dropped by 4.4% on the day to $0.129, according to Cointelegraph price data. XLM also received a lift from the partial court victory secured by Ripple, but since then has declined by 28%, and is currently down 85% from its all-time January high of $0.875.