According to the company, the self-custody wallet will operate on the Stellar network, supporting cryptocurrencies, stablecoins like USDC, and fiat channels enabled by MoneyGram.
International remittance company MoneyGram is reportedly planning to launch its own cryptocurrency wallet next year, marking a significant step towards the adoption of digital currencies within its products and services.
About MoneyGram’s New Crypto Wallet
According to a statement released by the company and cited by various media outlets, MoneyGram’s new wallet is set to hit the market sometime in the first quarter of 2024. The self-custody wallet will not place funds under the company’s control and will be built on the Stellar network, leveraging its partnership with the Stellar Foundation established in 2021. The statement reads:
“Upon launch, wallet users will be able to visit any participating MoneyGram location to withdraw their digital assets and enhance the utility of their holdings. Individuals will also seamlessly send crypto assets to other users through their wallet. Notably, and industry-exclusive, MoneyGram will apply its global compliance assessment capabilities, best in class, to all users of this product.”
The wallet’s software design is handled by Cheesecake Labs, ensuring the product will also have access to the fiat input and output channels that MoneyGram already operates on the Stellar network, including the ability to send, store, and receive the USD Coin (USDC) stablecoin.
CEO’s Statement Alex Holmes, CEO of MoneyGram, stated that the launch of this product aims to “create equal access to the global financial system” for many individuals, adding:
“MoneyGram’s self-custody digital wallet further advances this mission. We are thrilled to have the vision, strategic plans, innovative technology, and expansive retail network to continue offering consumers access to the digital economy, now backed by our global reputation for speed, efficiency, and trust.”
MoneyGram and Cryptocurrencies
The announcement of MoneyGram’s new wallet represents a significant advancement in incorporating cryptocurrencies into the company’s offerings.
In late 2022, MoneyGram released an update to its app allowing users to buy, sell, and store cryptocurrencies, initially supporting transactions with Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), available only to customers in the U.S. and the District of Columbia. Months earlier, the company enabled a new payment channel linked to the USD Coin (USDC), offering services in countries like Canada, the U.S., Kenya, and the Philippines.
More recently, the Stellar Foundation reported a strategic investment in MoneyGram, earning the organization a seat on the remittance company’s board of directors, strengthening alliances, and paving the way for new products and services.