Zebec Network has adopted MoneyGram Ramps for use in its enterprise payroll system via the Stellar network, thus offering workers and contractors access from stablecoin transactions to fiat. The collaboration between these companies leverages the payroll system of Zebec, the payment network of Stellar, and the global cash-out services of MoneyGram.
This integration helps address a crucial problem faced by the payroll stablecoin in that it allows the transformation of digital dollars into local money. MoneyGram Ramps will enable any wallet or application to perform USDC cash-in and cash-out on the Stellar blockchain network, with access possible from all participating locations in over 170 countries.
Source: businesswire
Zebec Brings Fiat Access to Stablecoin Payroll
Utilizing Zebec on Stellar enables organizations to send out employee payments via stablecoins. These payments can be received into the digital wallet as the payroll gets accumulated, where the digital currency can be kept or transferred using the Zebec cards.
The MoneyGram solution provides an additional alternative by linking up digital payroll to physical cash withdrawal. This can especially become significant in the case of international contractors and companies working in several jurisdictions.
“The Stellar network provides the payments infrastructure, MoneyGram extends that infrastructure into local fiat access, and Zebec brings the employer and recipient experience together,” said Simon Babakhani, CEO of Zebec Network.
The development could make stablecoin payroll more practical by reducing the gap between receiving digital assets and using money for everyday expenses.
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Stellar Expands Stablecoin Payments With Zebec
The alliance will further solidify Stellar’s presence within stablecoin-enabled transactions and financial inclusion. The blockchain has been concentrating more on applications that revolve around stablecoins, remittance, issuance of assets, and institutional settlement.
As far as users are concerned, the value lies not just in the payroll integration itself. Stablecoin payments become valuable when users can transition from digital finance to traditional finance without relying solely on conventional banking institutions.
Furthermore, Zebec is taking its technology out of the realm of payroll. According to the company, artificial intelligence, along with stablecoins, is revolutionizing the way businesses handle their finances, with the larger plan involving programmable financial rails that enable automated corporate transactions and financial processes.
US Bank Completes First USBDC Pilot on Stellar
Institutional involvement is yet another key development in the Stellar blockchain network. In the most recent announcement, the American bank US Bank has completed its very first pilot payment transaction in the Stellar blockchain network using its own stablecoin, USBDC.
Source: Stellar’s X Post
This trial employed the US Bank’s internally developed Digital Asset Platform, complemented by other existing banking platforms and controls. The bank assessed functionality throughout the stablecoin lifecycle, namely minting, payment, redemption, freeze, and clawback.
This is particularly important because the transaction was built with actual banking systems in mind and not just a stand-alone blockchain sandbox. This helps illustrate how public blockchain systems can be tested along with existing financial regulations.
Institutional Adoption Could Broaden Stellar’s Role
Stellar’s controls at an asset level are especially useful for regulated financial institutions. Some of the tools that issuers may utilize include freezing assets, recapturing money, and requiring authorization.
This platform also provides speedy settlement with reduced costs, attributes that may help in cross-border treasury and payment transactions. Such features for banks would be useful to improve the settlement process without compromising on compliance and risk management requirements.
Stellar could play a bigger part in payment processing, payroll, and finance through its partnership with Zebec in payroll payments, MoneyGram in providing access to fiat currency, and U.S. Bank’s stablecoin pilot.
What Happens Next?
The next phase will depend on the success of these partnerships becoming ongoing business activities. The integration of MoneyGram by Zebec may extend practical use of stablecoin payroll, while US Bank is exploring opportunities in liquidity management, mobility of collateral, and international treasury management.
For Stellar, however, these developments reinforce the need for blockchain technology that enables integration between digital assets and the traditional financial system.
Provided the trend persists, it will likely become increasingly relevant to the business world in relation to rapid cross-border transfers of funds.
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