MoneyGram will allow its customers to withdraw their cryptocurrency holdings in cash. This will likely make it easier for people to swap digital currencies for fiat currencies.
MoneyGram partners with Coinme to roll out the latest service
Traditional financial institutions have been entering the cryptocurrency market in large numbers over the past few months. A massive rise in the prices of cryptocurrencies has led to the total crypto market cap rising to above $2 trillion. As well, the increasing retail and institutional adoption have convinced several financial institutions to offer cryptocurrency services.
MoneyGram announced earlier today that it has partnered with Bitcoin exchange and ATM operator Coinme to allow its customers to withdraw their cryptocurrency holdings in cash. The service is currently available to people in the US, but MoneyGram will soon expand it to other parts of the world. This latest development marks another step from a mainstream financial institution towards accepting cryptocurrencies.
According to the report, new and existing Coinme users can buy cryptocurrencies with cash. They can also withdraw them from the numerous MoneyGram outlets across the United States. Alex Holmes, MoneyGram’s chairman and CEO, said, “This innovative partnership opens our business to an entirely new customer segment as we are the first to pioneer a crypto-to-cash model by building a bridge with Coinme to connect bitcoin to local fiat currency.”
The crypto adoption continues
Mainstream financial services have been increasingly making moves towards the cryptocurrency space. For example, MasterCard will support a few cryptocurrencies on its network before the end of the year. Similarly, Visa now accepts payments via USDC stablecoins. In addition, PayPal and Venmo allow their customers to buy, sell, and hold several cryptocurrencies.
Traditional banks such as JPMorgan Chase, Goldman Sachs, Morgan Stanley and BNY Mellon are also involved in the crypto space in various ways. The partnership with Coinme isn’t the first time MoneyGram is venturing into the crypto market. The financial services firm partnered with blockchain start-up Ripple in 2018 to launch the use of XRP in cross-border payments. The project was put on hold earlier this year due to Ripple’s ongoing legal battle with the United States Securities and Exchange Commission (SEC).