Byline: Hannah Parker
MoneyGram, an American money transfer service, announced the launch of a cryptocurrency app service in late 2022. The new service will allow consumers to sell, hold, and buy cryptocurrency through the MoneyGram app, giving all States and the District of Columbia the ability to trade and store Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH). The move marks an expansion to MoneyGram’s native crypto support, as it previously enabled users to buy and withdraw Bitcoin in the United States.
The firm plans to add more crypto assets to its platform in 2023; this was announced in a on November 1, 2022. This latest development was made possible through a partnership with Coinme crypto exchange. MoneyGram also expanded its previous Bitcoin support for customers; last May, the company enabled consumers to buy and trade Bitcoin in a number of its physical outlets around the states. According to MoneyGram, the recent initiative is bringing actual Bitcoin and blockchain use cases to the real world.
The partnerships with G-coin and Stellar have enabled the app to do anything from cross-border settlement to digital wallets. Chairman and CEO of MoneyGram, Alex Holmes, said: “We are thrilled to provide our customers with a dependable and easy-to-use platform to buy, hold and sell select cryptocurrencies safely.” Holmes also added that the company continues to meet cryptocurrency users’ demands while bridging the gap between blockchain and traditional financial services. Fintech innovation is additive to the MoneyGram network, enabling instant global access to cryptocurrencies and compliance solutions. According to an expert at , the mobile payment processing app added support for transactions through the Bitcoin lightning network. The new features are intended to allow cash app users to send Bitcoin on a more efficient and faster layer protocol.
The topic of crypto offering services amongst payment providers has been trending. It was announced that Western Union had filed three trademark applications. The Western Union wants to manage digital wallets, exchange digital wallets and commodities derivatives, issue tokens of value, and provide brokerage and insurance services. In a press release in November 2022, global payment processor Visa revealed a launch collaboration with crypto exchange Coinme. The partnership will enable financial institutions to offer secure crypto trading services to their customers. Singapore has also joined the list as it announced that it was granting Circle and Paxos in-principle licenses. The duo will offer digital payment token services and a license to manage a significant payments institutional license holder in Singapore.
About MoneyGram
MoneyGram is an international firm that is a global leader in the progression of digital P2P payments. The firm delivers innovative financial solutions that connect communities globally. Over the last five years, MoneyGram has grown to serve over 150 million people. The company has a purpose-driven strategy to mobilize the movement of money, leading customer-centric capabilities and a strong culture of fintech innovation. MoneyGram collaborates with top brands globally to serve consumers through its digital channel. The company’s advantage is its modern, mobile, and API-driven platform, global retail network, and embedded finance business for enterprise users. MoneyGram is a leader in evolving cross-border payment innovation and blockchain-enabled settlement.
What transpired between MoneyGram and Ripple?
In December 2020, the US Security and Exchange Commission (SEC) brought charges against the blockchain-based processor and its executives for conducting an unregistered security offering. The lawsuit is still pending, but that did not prevent MoneyGram from cutting ties with Ripple. The two announced that they decided to end their partnership agreement in March 2021. The consequence of dissolving the partnership due to the lawsuit was evident for Ripple and its native token. The association had managed to process billions of dollars through RippleNet and On-Demand Liquidity. Ripple announced that both parties are committed to revisiting their partnership in the future.
Amid a shifting financial landscape, MoneyGram wants to remain relevant and capture some interest and gain momentum. As the economy faces multiple challenges, including rising interest rates, crypto continues to rise, making it an excellent move to partner with cryptocurrencies. According to Holmes, MoneyGram enables instant access to over 120 circulations worldwide, and we see digital and cryptocurrencies as another input and output option. However, to establish itself as a player in the crypto ecosystem with this new offering, the company has a lot of catching up to do when comparing it to more established competitors that offer a far more extensive list of token offerings. While MoneyGram progresses, we will keep you updated on the developments regarding this project. This column is for educational purposes and does not serve as legal advice. Continue to do your research on this topic and seek advice from professionals.