MoneyGram announced that they are launching cryptocurrency trading in partnership with a crypto exchange Coinme.
Users of MoneyGram, a financial services provider, can now trade cryptocurrencies in a mobile application. The list of digital currencies is limited to Bitcoin, Ether, and Litecoin. The new feature is available to U.S. customers (excluding some states). Furthermore, the company is going to expand the selection of crypto and its geographical presence.
“Cryptocurrencies are additive to everything we’re doing at MoneyGram. From dollars to euros to yen and so on, MoneyGram enables instant access to over 120 currencies around the globe, and we see crypto and digital currencies as another input and output option. As a next step in the evolution of MoneyGram, we’re thrilled to provide our customers with access to a trusted and easy-to-use platform to securely buy, sell and hold select cryptocurrencies.” – Alex Holmes, MoneyGram Chairman and CEO.
Alex Holmes also mentioned earlier, that this step would allow them to cater to a younger, digital-native customer base.
MoneyGram continuously reports an increase in its digital division, revenues. Last year MoneyGram Online and digital partnership services recorded an impressive 30% year-on-year growth.
To develop cryptocurrency trading on their app, MoneyGram partnered with Coinme, a licensed crypto exchange and API-driven crypto-as-a-service provider. MoneyGram announced its original partnership with Coinme in May 2021 “to create a crypto-to-cash model by building a bridge to connect Bitcoin to local fiat currency”. Later, at the beginning of this year, MoneyGram supported Coinme's international expansion plans and other growth initiatives with a strategic minority investment, which gave MoneyGram an approximate 4% ownership stake in Coinme, which likely cost more than $764,000, given its valuation of $19.1 million in June.
It’s not the only partnership of MoneyGram in crypto area. Back in 2021, MoneyGram also partnered with the Stellar blockchain to launch a crypto-to-cash service. This service allows transferring USDC and cashing it out for fiat currency through the MoneyGram network.
MoneyGram is not the first transfer provider to go into crypto. Paypal has already launched its crypto pilots in some regions. However, there are those who are still lagging behind: Western Union is only considering adding crypto-related services for their clients. Previously Western Union announced that it was not adding crypto transfers to their system.
This autumn there were many crypto launches for giant traditional businesses. Just a couple of weeks ago, Mastercard revealed that they are testing a new software that would allow banks to deal in crypto. Different banks and corporationsare diving into the crypto business independently. Are you ready to replace your fiat transactions with crypto ones?