Today Moneygram announced plans for a digital wallet that will use stablecoins as a conduit for cryptocurrency on and off ramps and for cross border payments. The non custodial wallet will launch in early 2024 in association with the Stellar Development Foundation (SDF). Last month the remittance firm revealed that SDF is an investor.
Moneygram has partnered with Stellar since 2021, initially using the USDC stablecoin on the Stellar blockchain for payments or to settle incoming remittances.
It’s already possible for anyone to visit a MoneyGram location to cash out their digital assets. The new wallet takes it a step further.
For those who want to host their own crypto, it creates a genuine alternative to cryptocurrency exchanges, which people usually use as an off ramp. In reality, there is a crypto exchange behind the scenes, as MoneyGram took a stake in CoinMe for this purpose.
But more than that, Moneygram, offers a more inclusive option because it caters to people who don’t have a bank account. That said, any transactions involving cash are never free because it costs quite a bit to handle cash, both in terms of security and bank charges.
The wallet will be offered as a zero-fee service until June 2024. Moneygram is partnering with Cheesecake Labs to build it.
“Our vision to connect the world’s communities, by empowering our customers through innovative financial solutions, takes another step forward today,” said Alex Holmes, MoneyGram CEO. “Through the services we provide in partnership with SDF, MoneyGram has made strides to create equitable access to the global financial system, having become the single largest fiat on and off-ramp provider offering blockchain access worldwide.”