How to activate your Stellar wallet for your first cash in MoneyGram transaction

Modified on Fri, 26 Apr at 1:12 PM

"Cash in with MoneyGram" option allows LOBSTR users to seamlessly exchange physical cash for digital dollars at MoneyGram locations around the globe.

You can visit a MoneyGram location near you, deposit cash in your local currency and receive Stellar USDC (USD Coin) in a matter of minutes, all without requiring a bank account. 

*FX may apply for MoneyGram transactions.

However, your Stellar wallet needs to be active to initiate cash-in transactions with MoneyGram.


Why active Stellar wallet is required to cash in with MoneyGram?

Per Stellar protocol rules, each Stellar wallet must maintain a minimum balance of 1 XLM to exist and transact on the network.

In order to receive USDC deposits and hold USDC asset balance, Stellar wallets must also establish a trustline with the corresponding asset issuer (add the asset to the account), which increases the required minimum balance by 0.5 XLM. 

The total minimum account balance enforced by the network rules adds up to 1.5 XLM. 

MoneyGram is not able to send funds to your account unless these conditions are satisfied. 

Learn more about minimum balances on Stellar here.

How LOBSTR helps you initiate your first cash in

If you are new to LOBSTR and your Stellar wallet is inactive, LOBSTR can help you complete your first cash in via MoneyGram. 

To help you get your account activated, we are using a feature of the Stellar network called 'sponsored reserves'. 

Sponsored reserves allow a Stellar wallet operated by LOBSTR to cover the minimum balance for the user's Stellar wallet, effectively transferring these requirements to a separate LOBSTR-owned account.

While this relationship exists, minimum balance requirements that would normally apply to a user's Stellar wallet temporarily apply to LOBSTR's sponsoring account.


Learn more about sponsored reserves here.

My Stellar wallet is inactive. How do I initiate my first cash in via MoneyGram? 

You will see that an active wallet is required if you attempt to cash in with MoneyGram and your Stellar wallet does not exist yet (inactive).

Click the 'Agree and Continue' button to activate your wallet and start the cash in process.

Make sure your LOBSTR mobile app is updated to version 9.0.0 or higher if you don't see this option on your end, or start the cash in 

When you click the 'Agree and Continue' button, LOBSTR creates a unique sponsorship transaction that enables your account to start the MoneyGram cash in process. 

This transaction activates your Stellar wallet on the network, adds USDC trustline required to receive your deposit later, and transfers the minimum balance requirements from your Stellar wallet to the sponsoring account operated by LOBSTR. 

Your Stellar wallet stays in your sole control before and after the transaction is applied.


At the same time, LOBSTR also funds your Stellar wallet with an extra 0.05 XLM, as XLM is required to pay transaction fees on the network. Once you receive your first USDC deposit, use these funds to swap some of your USDC to XLM so you can perform more transactions in the future. 

The sponsorship service is provided by LOBSTR free of charge.  

Each LOBSTR user can only request one Stellar wallet to be sponsored to start the MoneyGram cash in process. Any subsequent accounts used by the same user will need to be activated by this user manually. 


Once you have enough XLM on your account balance to cover the minimum balance for your Stellar wallet on your own, LOBSTR will automatically revoke the minimum balance sponsorship provided earlier. 

That means that 1.5 XLM minimum balance will be reserved on your account according to the network rules. 

Do not worry, the funds in your reserved balance are still yours and can be withdrawn at any time.


Removing USDC trustline will free up 0.5 XLM reserved on your balance. You can use the LOBSTR merge tool in case you want to withdraw the last 1 XLM reserved on your balance. 

Learn more about the Merge tool here.

Having issues with my MoneyGram transaction. What should I do?

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