On the possible deal, the proponent of blockchain-based payment systems is collaborating with Advent, a private equity group.
Bloomberg reported on Wednesday that the Stellar Development Foundation had contacted MoneyGram International about buying the 81-year-old remittance behemoth.
According to unidentified individuals quoted in the report, Stellar collaborates with Advent, a private equity firm. As a result, stellar and Advent may decide not to proceed with the purchase.
Stellar, a non-profit headquartered in San Francisco that promotes a blockchain-based platform that allows individuals and institutions to move money, invested $15 million in AirTM, a digital wallet and peer-to-peer trading platform established in Mexico in May.
MoneyGram had previously piqued the curiosity of a blockchain payment services company. Ripple finalized the purchase of a $50 million interest in the company in November 2019. It sold a third of its shareholding a year later. After the Securities and Exchange Commission (SEC) filed a complaint against Ripple, the two companies decided to end their collaboration arrangement in March of this year.
Given the two crypto projects’ history of the competition, a Stellar acquisition of MoneyGram would be a terrible twist of fate for the beleaguered Ripple. After a falling out with the rest of the leadership, Jed McCaleb, a co-founder of Ripple, departed the business in 2013 to create Stellarly.