Ripple competitor Stellar, why is it taking over Latin America?

▲ Stellar Lumens (XLM) ©

Ripple's strong competitor has set its sights on the Latin American remittance market and embarked on a full-scale expansion.

According to cryptocurrency media outlet Bitcoinist on May 5 (local time), the Stellar Development Foundation (SDF), which supports Stellar Lumens (XLM), has extended its multi-year partnership with global remittance company MoneyGram and designated the Latin American market as a key expansion region. This collaboration is considered a step to further expand the infrastructure, which has been in place for over five years, based on the two companies' cooperation that began in 2021.

During this period, both parties have built on/off-ramp systems to convert digital assets into cash, launched the 'MoneyGram Ramp API' for developers, and integrated stablecoin balance functionality within the app. In particular, this expansion is interpreted as a strategic move to extend the existing payment infrastructure to a global level, beyond a mere extension of cooperation.

The focus of this project is Latin America. This region is a market highly dependent on international remittances and is characterized by a lack of existing financial infrastructure. Stablecoin-based services are already operating in Colombia and have expanded to El Salvador. Users can instantly receive and store dollar-based digital assets and cash them out through over 500,000 MoneyGram offline locations in more than 200 countries worldwide.

This service operates through a combination of the Stellar blockchain, Crossmint, and USD Coin (USDC). MoneyGram CEO Anthony Souhu emphasized building an open payment network that encompasses fiat currencies and stablecoins, and Denelle Dixon of SDF also stated that this cooperation will be a key foundation in terms of cost reduction and increased accessibility.

The Stellar ecosystem is also rapidly expanding. As of early 2026, the scale of real-world asset tokenization exceeded $1 billion, and its use is expanding into various fields such as bonds and financial products. Institutional demand is flowing in based on low fees and a fast payment structure. Currently, the XLM price is stably maintained at around $0.26, and market attention is focused on whether this expansion in Latin America will lead to an actual increase in network usage.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*