Why is Ripple's Competitor Stellar Taking Over Latin America?

▲ Stellar Lumens (XLM) ©

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

According to the 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 phase to further expand the infrastructure that has continued for over 5 years, building upon the partnership between the two companies that began in 2021.

The two sides 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 characterized by a high reliance on international remittances and 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 physical 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 Souhou emphasized building an open payment network encompassing fiat currencies and stablecoins, and SDF's Denelle Dixon also assessed this collaboration as a key foundation for cost reduction and increased accessibility.

The Stellar ecosystem is also rapidly expanding. As of early 2026, the real-world asset tokenization volume has exceeded $1 billion, and its utilization 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.

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