Stellar Development Foundation, a non-profit fund, together with the investment company Advent, is negotiating the acquisition of MoneyGram.
July 22, 2021, | AtoZ Markets – The Stellar Development Foundation, is in talks with investment firm Advent International to buy the payment giant MoneyGram, Bloomberg writes, citing sources.
However, as the sources emphasize, the final decision has not yet been made. Companies can also opt-out of the acquisition of MoneyGram by mutual agreement. The financial terms of the deal were not disclosed.
Stellar may acquire MoneyGram, a money transfer service that has partnered with Ripple
MoneyGram's acquisition talks began a couple of months after the payment service terminated its partnership with Ripple. Then both companies said that the decision was mutual in nature. The end of the partnership was a reaction to the lawsuit between Ripple and the US Securities and Exchange Commission (SEC).
Amid rumors of a possible deal, the price of Stellar Lumens (XLM) jumped 15.4%. At the time of writing, the altcoin price in the XLM/USD pair is trading at $0.25. MoneyGram shares also rose 11% on Wednesday and 265% over the past year.
As a reminder, the Stellar ecosystem was founded in early 2014 by Jed McCaleb and Joyce Kim as an offshoot of the Ripple system in response to XRP 's criticism of network centralization. Later, Brad Garlinghouse became the head of Ripple.
McCaleb's relationship with Ripple deteriorated in 2014 when he threatened to sell off his entire stake in XRP. At that time, it was $45 million. However, despite the threats, McCaleb did not dump because of the lawsuits that followed the statement.
McCaleb is believed to have sold 1.2 billion XRP since 2014. He currently owns approximately 2.5 billion XRP.
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