MoneyGram Acquires Minority Stake in Crypto ATM Operator Coinme

On January 5, Cash transfer company MoneyGram International Inc announced that it made a strategic investment in crypto cash exchange firm Coinme. The investment gives MoneyGram a 4% ownership stake in Coinme. The venture, which closed Coinme’s Series A financing round, provides MoneyGram with a direct ownership position in one of the fastest growing crypto companies in the world.

MoneyGram first partnered with Coinme in May 2021 to develop a crypto-to-cash model by creating a bridge to connect Bitcoin to local fiat currency. The partnership assisted in expandingaccess to
 
 Bitcoin 
by creating thousands of new point-of-sale locations that enable Coinme and MoneyGram customers to sell and purchase Bitcoin for cash. The two firms have additional initiatives planned to continue adding value to the partnership.

Alex Holmes, MoneyGram Chairman and CEO, talked about the development and said: “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. Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies. Our unique cash-to-bitcoin offering with Coinme, announced in May of 2021, opened our business to an entirely new customer segment, and we couldn’t be more pleased with our progress. As we accelerate our innovation efforts, partnerships with startups like Coinme will further our position as the industry leader in the utilization of blockchain and similar technologies.”

Meanwhile, Neil Bergquist, Coinme CEO, also commented about the development and stated. “We see this as an incredible opportunity to continue our strong growth and build on our leading presence in the world of crypto. With MoneyGram’s global network and infrastructure, both the Company’s continued partnership and strategic investment will help us accelerate our growth and international expansion. We are thrilled to expand our relationship with Coinme, and this strategic investment will further support our growth strategy with strong financial upside.”

The Coexistence of Crypto and Fiat Money

While Bitcoin helps to liberate people from the toxic effect of inflation on their savings, cash is still the king. The reality is that society still depends on government-issued money. For the majority of people, their funds are denominated in local fiat currency. That makes perfect sense as the fintech companies seek to enable frictionless transfers between cash and Bitcoin, and a shift to a more fully digitized financial world. Coinme pursues Satoshi’s vision of a global peer-to-peer electronic cash system with consideration that consumers need a cash onramp. The crypto firm launched its crypto operation in 2014 as one of the world’s fastest providers of Bitcoin ATMs. As a result, the company formed partnerships with MoneyGram and Coinstar to allow customers to easily
 
 exchange 
Bitcoin with fiat money. Coinstar runs a global network of 20,000 machines that allow consumers to convert their extra change into either bank notes or electronic gift card vouchers. Such machines are mostly located in grocery stores. MoneyGram, which specializes in cross-border remittance, runs 350,000 walk-in locations across the world where customers can deposit and send money to relatives or friends. About 7000 of Coinstar’s kiosks are crypto-enabled and thus allowing users to deposit up to $2,500 cash in exchange for Bitcoin in their Coinme account. On the other hand, the MoneyGram partnership enables customers to hand over or receive cash in exchange for Bitcoin simply by giving instructions to the ATMs.

On January 5, Cash transfer company MoneyGram International Inc announced that it made a strategic investment in crypto cash exchange firm Coinme. The investment gives MoneyGram a 4% ownership stake in Coinme. The venture, which closed Coinme’s Series A financing round, provides MoneyGram with a direct ownership position in one of the fastest growing crypto companies in the world.

MoneyGram first partnered with Coinme in May 2021 to develop a crypto-to-cash model by creating a bridge to connect Bitcoin to local fiat currency. The partnership assisted in expandingaccess to
 
 Bitcoin 
by creating thousands of new point-of-sale locations that enable Coinme and MoneyGram customers to sell and purchase Bitcoin for cash. The two firms have additional initiatives planned to continue adding value to the partnership.

Alex Holmes, MoneyGram Chairman and CEO, talked about the development and said: “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. Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies. Our unique cash-to-bitcoin offering with Coinme, announced in May of 2021, opened our business to an entirely new customer segment, and we couldn’t be more pleased with our progress. As we accelerate our innovation efforts, partnerships with startups like Coinme will further our position as the industry leader in the utilization of blockchain and similar technologies.”

Meanwhile, Neil Bergquist, Coinme CEO, also commented about the development and stated. “We see this as an incredible opportunity to continue our strong growth and build on our leading presence in the world of crypto. With MoneyGram’s global network and infrastructure, both the Company’s continued partnership and strategic investment will help us accelerate our growth and international expansion. We are thrilled to expand our relationship with Coinme, and this strategic investment will further support our growth strategy with strong financial upside.”

The Coexistence of Crypto and Fiat Money

While Bitcoin helps to liberate people from the toxic effect of inflation on their savings, cash is still the king. The reality is that society still depends on government-issued money. For the majority of people, their funds are denominated in local fiat currency. That makes perfect sense as the fintech companies seek to enable frictionless transfers between cash and Bitcoin, and a shift to a more fully digitized financial world. Coinme pursues Satoshi’s vision of a global peer-to-peer electronic cash system with consideration that consumers need a cash onramp. The crypto firm launched its crypto operation in 2014 as one of the world’s fastest providers of Bitcoin ATMs. As a result, the company formed partnerships with MoneyGram and Coinstar to allow customers to easily
 
 exchange 
Bitcoin with fiat money. Coinstar runs a global network of 20,000 machines that allow consumers to convert their extra change into either bank notes or electronic gift card vouchers. Such machines are mostly located in grocery stores. MoneyGram, which specializes in cross-border remittance, runs 350,000 walk-in locations across the world where customers can deposit and send money to relatives or friends. About 7000 of Coinstar’s kiosks are crypto-enabled and thus allowing users to deposit up to $2,500 cash in exchange for Bitcoin in their Coinme account. On the other hand, the MoneyGram partnership enables customers to hand over or receive cash in exchange for Bitcoin simply by giving instructions to the ATMs.

Source: https://www.financemagnates.com/fintech/moneygram-acquires-minority-stake-in-crypto-atm-operator-coinme/