The Stellar Development Foundation, a nonprofit that supports the growth and development of the Stellar network, has invested in payment giant MoneyGram International.
Denelle Dixon, CEO and executive director of Stellar Development Foundation, took to Twitter to announce the latest development, stating: "The decision to invest in MoneyGram was an easy one. After years of getting to know the business and the teams, we are excited to take part in MoneyGram's next chapter."
The Stellar Foundation CEO provided additional information about the investment move in a blog post.
Dixon stated that the Stellar Development Foundation (SDF) became a minority investor in MoneyGram when the opportunity arose during the recent go-private transaction with Madison Dearborn Partners (MDP).
The investment was made from the Stellar Development Foundation's cash treasury, which is assets set aside to support the SDF's activities, rather than the Enterprise Fund, which is a fund that invests in start-ups and early-stage firms. The actual investment amount remains undisclosed.
Dixon highlights that this is the first investment of its kind made from SDF's treasury. The investment also grants Stellar a seat on MoneyGram's board of directors, a role she is filling.
Aside from that, the investment would place Stellar in a position to contribute to MoneyGram's journey, namely in areas such as expanding its digital business and exploring blockchain technology.
In a throwback, Stellar's journey with MoneyGram International officially began with a commercial partnership dating back to 2021.
XLM, the native crypto asset of the Stellar network, was indifferent to the news and was down 3.50% in the last 24 hours to $0.129.