On May 6, 2020, the Stellar Development Foundation announced a $5 million investment in Abra, a crypto wallet service based in Silicon Valley. As part of the new deal, Abra will further integrate Stellar’s blockchain tech in its payment and investment products.
In a joint statement, the companies said that the investment would help facilitate that integration, which will see Stellar used as the blockchain back-end on Abra and “soon bring an array of new products to the Stellar network.”
Based on the announcement, it appears that the partnership will give Abra users new on and off-ramps to the traditional financial system through the Stellar network.
Abra CEO Bill Barhydt commented on the remarkable partnership, saying that the XLM token is already natively hosted on Abra. However, he did not provide further details regarding any future products that would be forthcoming.
Rivaling Ripple in International Remittances
This partnership could now aid both organizations’ efforts in advancing global settlements and intensify the rivalry between Stellar and Ripple in dominating the market share for international remittance corridors.
As of now, Abra users can send crypto across the world in minutes to other wallet users and addresses. In fact, Abra currently funds their wallets with bank transfers in the U.S, and credit card payments or cash in the Philippines.
Meanwhile, Stellar recently expanded into South East Asia with its Lightnet network, and partnered with remittance giant MoneyGram—a company in which Ripple is heavily invested.
Theoretically, if users have more ways to buy XLM, they could then trade those tokens for more than 100 other crypto and fiat currencies through Abra. Stellar has recently received a boost by listing on Coinbase, resulting in XLM prices skyrocketing.
The Stellar-Abra Partnership is Great for Blockchain Technology
Abra’s crypto trading app possesses the right knowledge and technicality necessary to revolutionize the innovative blockchain industry. Also, its progress has continuously helped it thrive to offer much-enhanced services to crypto users worldwide.
And hence, this integration with Stellar will help the trading app to build a product portfolio of financial services that comply exactly with SDF’s mission of maintaining “Stellar lumens codebase”, a decentralized network offering speed and scalability for financial services.
The SDF’s long -term vision is the provision of wider access to the financial system globally via the Stellar network, thus indirectly contributing to the adaptation of blockchain technology.