- MoneyGram and Stellar partner to launch a digital wallet in early 2024, simplifying global payments and enabling fiat-to-crypto transitions.
- Users can cash out digital assets at MoneyGram locations, reducing cross-border fees and enjoying flexible fund management.
MoneyGram, the renowned global financial institution, is making remarkable advancements in the digital finance sphere. In a move set to redefine cross-border financial operations, the corporation is on the brink of introducing a state-of-the-art non-custodial digital wallet scheduled for launch in the first quarter of 2024.
This strategic endeavor was achieved through a partnership with the Stellar Development Foundation. This underscores MoneyGram’s unwavering commitment to exploring the potential of blockchain technology and its transformative impact on global fund transfers.
Seamless Fiat-to-Digital Transitions for Consumers
The forthcoming MoneyGram digital wallet promises to revolutionize financial management for consumers. An exceptional feature of this wallet is its effortless integration of traditional and digital currencies, granting users the flexibility to easily switch between them. Unlike conventional systems, MoneyGram will no longer tether users to a single fiat currency during transactions. Instead, they will be free to select the currency that best aligns with their requirements.
Security and compliance are paramount in digital finance, and MoneyGram takes these concerns seriously. The company will apply rigorous global compliance screening to all wallet users, ensuring a secure and fully compliant environment. This proactive approach establishes a trustworthy and dependable platform for financial transactions.
A significant advantage of the MoneyGram digital wallet is its potential to substantially reduce cross-border transaction fees. MoneyGram transactions typically incur fees of around 3 percent, which already falls below the industry average of 6.3 percent, as identified by the World Bank. However, MoneyGram’s objective is to further lower this fee to less than 1 percent, aligning it with the established norms of digital transactions.
The inflexibility of fund transfers previously constrained traditional MoneyGram users. The introduction of the non-custodial wallet marks a paradigm shift. Users can now deposit cash into the wallet and maintain it as USDC until they convert it into their preferred fiat currency. This newfound flexibility empowers users, offering them control over their funds in ways previously unattainable.
Exclusive Compatibility for MoneyGram Wallets
MoneyGram’s digital wallet distinguishes itself from the majority of cryptocurrency wallets available in the market. Its compatibility is exclusive to MoneyGram wallets, which, while appearing limiting, serve as a strategic measure to mitigate potential regulatory hurdles. This approach safeguards the company’s interests and aligns with established compliance standards.
MoneyGram Expanding Presence in Crypto
MoneyGram’s venture into the cryptocurrency arena has garnered considerable attention. Recent developments include the ability for users to engage in cryptocurrency transactions through the MoneyGram app. This achievement became possible through MoneyGram’s strategic investment in Coinme, a cryptocurrency and cash exchange company headquartered in Seattle.
Users can now access seven cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), Stellar Lumens (XLM), Dogecoin (DOGE), and Polygon (MATIC). The service is accessible in all U.S. states except New York, Idaho, Hawaii, and the District of Columbia.
Furthermore, MoneyGram’s partnership with the Stellar Development Foundation has solidified its position in the blockchain sector. Stellar’s investment in MoneyGram aims to support the company in blockchain technology research, digital business ventures, and the development of user-friendly financial solutions.
Reflecting on Past Collaborations
It is essential to acknowledge that MoneyGram’s journey into cryptocurrency has experienced its share of challenges. In 2019, the company partnered with Ripple, with plans to utilize XRP for cross-border transactions and international settlements.
However, complications arose when the United States Securities and Exchange Commission (SEC) initiated legal action against Ripple. Consequently, Ripple CEO Brad Garlinghouse officially announced the temporary halt and eventual termination of the partnership in 2021.
