MoneyGram, the money transmission network, has purchased around a 4% ownership stake in Coinme as part of a strategic investment in the crypto company.
It has been reported that the investment follows a May 2021 partnership between the two firms aimed at expanding access to crypto-fiat exchanges.
Alex Holmes, the CEO of MoneyGram, said:
"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. Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies."
However, MoneyGram users are currently able to exchange their Bitcoin (BTC) and crypto holdings for cash at point-of-sale outlets. Coinme’s website reports more than 23,000 ATM locations in the United States, including MoneyGram and Coinstar.
The report said that while MoneyGram seemingly winds up its partnership with Coinme, currently only operating in the United States, it scaled back its collaboration with blockchain-based payments firm Ripple Labs in 2021.
The two firms inked a strategic partnership agreement in 2019, processing billions of dollars through Ripple’s RippleNet and On-Demand Liquidity services. MoneyGram suspended the partnership in February 2021 following the US Securities and Exchange Commission filing a complaint against Ripple, alleging securities violations.
Thus, as of January 5, shares of MoneyGram stock (MGI) are trading for $7.55, having fallen around 2.5% in the 24 hours.