MoneyGram Announces Plans to Launch Non-Custodial Cryptocurrency Wallet
Cross-border payments provider MoneyGram has revealed its intention to introduce a non-custodial cryptocurrency wallet through a partnership with Stellar. The move signifies MoneyGram’s strategic shift into the digital asset domain, with the wallet aimed at facilitating the exchange between traditional fiat currencies and USDC, a prominent stablecoin launched by Circle. MoneyGram CEO Alex Holmes emphasized the company’s commitment to digital evolution and dispelled misconceptions that it would be replaced by cashless products. The non-custodial wallet was developed in collaboration with Stellar and will feature strict KYC requirements. It will only be compatible with other MoneyGram wallets and allow users to visit participating locations to cash out their digital assets.
Partnership with Stellar
The non-custodial cryptocurrency wallet is the result of a partnership between MoneyGram and Stellar. The collaboration enables users to purchase and hold stablecoins while showcasing MoneyGram’s dedication to exploring blockchain technology. The wallet is set to be rolled out in 2024 and will offer new features that bridge international money transfers and blockchain payments.
Former Ripple Partnership
MoneyGram was previously partnered with Ripple, but the agreement ended in 2021 for undisclosed reasons. The partnership began in 2019 when Ripple acquired a $30 million stake in MoneyGram, granting the latter access to Ripple’s cross-border payment and foreign exchange settlement products. The termination of the partnership coincided with the U.S. Securities and Exchange Commission (SEC) suing Ripple and its executives over allegations of selling unregistered securities in the form of XRP.
Hot Take: MoneyGram Embraces Cryptocurrency with Non-Custodial Wallet
MoneyGram’s announcement of its non-custodial cryptocurrency wallet in partnership with Stellar highlights the company’s commitment to digital innovation. By entering the cryptocurrency ecosystem, MoneyGram aims to dispel misconceptions about its reliance on cash and seize the potential of blockchain technology. The wallet, set to launch in 2024, will offer users the ability to exchange fiat currencies for stablecoins and cash out their digital assets at participating locations. This move comes after MoneyGram’s previous partnership with Ripple ended, signaling a shift in strategy towards exploring new opportunities in the evolving crypto landscape.
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