US exchange behemoth Kraken has teamed up with legacy payments giant MoneyGram to roll out a global crypto-to-cash off-ramp.
They can now exchange their digital currency for fiat and withdraw physical cash at any of MoneyGram’s roughly 500,000 brick-and-mortar locations worldwide. Slow and complex fiat withdrawal associated with the traditional system can now be bypassed.
MoneyGram's rocky crypto past
MoneyGram's pivot toward blockchain and digital assets has been rather turbulent.
The legacy company first made major cryptocurrency headlines back in 2019. The company inked a strategic commercial partnership with Ripple.
Ripple made an initial $30 million equity investment in MoneyGram, piloting Ripple’s XRP-focused xRapid product. The goal of the partnership was to source on-demand liquidity and reduce the operating costs of cross-border foreign exchange settlements.
However, the ambitious Ripple partnership did not work out, and it was put on hold in early 2021 due to the lawsuit from the U.S. Securities and Exchange Commission's (SEC) high-profile lawsuit.
Still, MoneyGram didn't abandon the digital asset sector. The traditional financial player then moved its focus toward stablecoins and alternative blockchain networks.
Since 2021, MoneyGram has joined forces with Stellar Development Foundation (SDF) and Circle to use the USDC stablecoin.
MoneyGram's mobile app now includes an integrated stablecoin balance. The feature allows users to instantly receive digital dollars, hold them as a hedge against local inflation, and cash out at local physical branches.
On top of this, MoneyGram has launched the "MoneyGram Ramps API," which makes it possible for third-party developers and non-custodial crypto wallets.
Dan Burgin
U.Today Editorial Team
