Blockchain for Banking Capital markets News

MoneyGram invests in cash crypto onramp Coinme


Yesterday MoneyGram confirmed it has taken a 4% stake in Coinme which enables users to buy cryptocurrencies with physical cash, either via an app at MoneyGram locations or using kiosks elsewhere.

“At MoneyGram, we continue to be bullish on the vast opportunities that exist in the ever-growing world of cryptocurrency and our ability to operate as a compliant bridge to connect digital assets to local fiat currency,” said Alex Holmes, MoneyGram Chairman and CEO. “Our unique cash-to-bitcoin offering with Coinme, announced in May of 2021, opened our business to an entirely new customer segment.”

The companies say they plan to launch additional joint services beyond buying bitcoin with cash.

MoneyGram is no stranger to cryptocurrencies. In 2019 Ripple invested $50 million and the money transfer network used Ripple’s solution for certain transfer corridors. However, following the SEC lawsuit against Ripple alleging that XRP is a security, the two companies agreed to end their working relationship.

The money transfer firm then inked a deal for stablecoin cash payouts with Stellar, founded by Ripple’s co-founder and first CTO, Jed McCaleb. He didn’t depart on friendly terms. 

Meanwhile, Coinme also has a Ripple relationship. It plans to use Ripple’s new Liquidity Hub, an aggregation service providing access to cryptocurrency market makers, exchanges and OTC desks. The service is unrelated to XRP.

In July 2021, Coinme raised $10 million from Digital Currency Group, which owns Grayscale, Genesis Trading and CoinDesk. That brought cumulative funds raised to $19 million, according to crunchbase.

Image Copyright: ©tiraspr/123RF.COM