MoneyGram, a money transfer service provider based in Dallas, is venturing deeper into the cryptocurrency sector. The company has announced the acquisition of a 4% in Coinme, a cryptocurrency cash exchange platform.
In a press release on January 5, the money transfer service provider announced that besides its current acquisition, it has other joint partnerships with Coinme.
MoneyGram partners with Coinme
MoneyGram’s 4% stake purchase marks the end of Coinme’s Series A funding round. MoneyGram first announced its partnership with Coinme in May 2021. The collaboration was to enable users to purchase Bitcoin with cash. Additionally, the Coinme ATM machines also allow the withdrawal of cryptocurrencies in the form of cash.
Currently, the crypto cash services enabled by Coinme are only available in the US. However, the new service will be rolled out in other countries in 2022. The CEO of MoneyGram, Alex Holmes, commented on this stake purchase noting that it would enable MoneyGram to broaden its access to cryptocurrencies.
“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,” he said.
Coinme expansion plans
Coinme has been dedicated to pushing its crypto operations across the US. In 2019, Coinme announced a partnership with Coinstar, a supermarket kiosk to allow the sale of Bitcoin. Towards the end of 2020, the firm expanded its operations to feature 5000 machines in the US.
Coinme is currently the first licensed ATM operator in the US. The firm has a presence in 48 states across the US. Besides offering ATM services, Coinme also offers concierge trading and a wide range of services for institutional players.
As mentioned earlier, the investment from MoneyGram is part of Coinme’s Series A-1 funding round. During the funding round, Coinme also received $1.5 million from Xpring, Ripple’s investment and open development division.
The recent stake purchase by MoneyGram will once again bring Ripple and MoneyGram together. In March 2021, MoneyGram terminated its partnership with Ripple because of the case filed against Ripple and its executives by the US Securities and Exchange Commission (SEC).
Last October, MoneyGram announced its partnership with Stellar, Ripple’s greatest competitor.
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