The Stellar Development Foundation (XLM) invested $ 15 million in the Mexican digital portfolio and exchange platform AirTM. The capital injection aims to accelerate digital payments in Latin America and boost the sending of remittances in the region.
Its about largest disbursement made by the foundation’s business fund and the fifth executed so far in 2021, as reported by Stellar through a statement published on Tuesday, May 25. The purpose of the alliance is for AirTM to integrate its systems into the Stellar network, use its technology and associated cryptocurrency.
The merger is scheduled for next year, although tentative execution dates were not disclosed. The press release also does not indicate what the roadmap will be for the implementation between both platforms to be carried out. Stellar’s bet is for the region to quickly adopt digital payments and reduce the use of cash.
“With the move from AirTM to Stellar, we envision a future in which Latin America could become one of the fastest growing regions for global remittances, unleashing a wave of adoption and innovation in business and peer digital payments across the globe. region, ”said Denelle Dixon, CEO and chief executive officer of the foundation.
A spokesperson for the fund indicated that the operation made directly in US dollars and not in the lumens cryptocurrency (XLM). The crypto asset on the Stellar network is among the 20 with the highest market capitalization with a daily trading volume of $ 1.7 billion, according to CoinMarketCap records.
Competing in the remittance market in Mexico
At present, Stellar executes multiple projects related to stablecoins, central bank digital currencies and consolidation of cross-border payments, all through its system oriented to corporate financial services, as reported by CryptoNews.
The alliance would represent a new competitor for other companies in the cryptocurrency industry, like Ripple Labs, for sending remittances to Mexico, for example. The company that issues XRP has for years maintained alliances with Aztec exchanges such as Bitso to process this type of operations.
Stellar justified its millionaire investment by saying that Mexico is a market with potential since in 2020 91% of all transactions were carried out with cash. Furthermore, Latin America only captured 5% of all global cross-border operations, which could be interpreted as a business opportunity for the foundation.