MoneyGram Taps USDC Over Ripple for New Visa Card
MoneyGram has launched a new Visa card that allows customers to spend USD Coin (USDC) anywhere Visa is accepted. This move comes as Ripple's former partner, MoneyGram, has chosen Circle's USDC over Ripple's own dollar-backed stablecoin, RLUSD.
The new Visa card draws its balance from a USDC wallet rather than a bank account, allowing customers to spend stablecoins at any merchant that takes Visa. The card is currently available in Colombia and can be used digitally within the MoneyGram app, with physical cards and ATM withdrawals set to follow later this year.
MoneyGram's Chairman and CEO Anthony Soohoo said the card gives customers 'more freedom and control to manage their money, all in one place.' The move is significant as it highlights the growing importance of stablecoins in cross-border payments and the trust that MoneyGram has placed in Circle's USDC.
Ripple's former partnership with MoneyGram was a key part of its own payments ambitions. However, the choice of USDC over RLUSD raises questions about whether Ripple's native token, XRP, will benefit from the company's growing stablecoin business.