MoneyGram International, Inc. has announced it’s purchased a minority stake in U.S. crypto exchange Coinme. At the time of writing, it is believed MoneyGram owns as much as four percent of the company.
MoneyGram Has Bought a Stake in Coinme
The move closes out a recent Series A funding round held by Coinme, which is quickly becoming one of the largest and fastest growing crypto trading platforms in the world. MoneyGram chairman and CEO Alex Holmes said in a statement:
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… We are thrilled to expand our relationship with Coinme, and this strategic investment will further support our growth strategy with strong financial upside.
MoneyGram first paired with Coinme in May of last year to design a new financial system that would combine both crypto and fiat into one unique platform. Customers were given new methods of purchasing bitcoin and related cryptocurrencies, and both companies say they have additional initiatives planned that will make their partnership even stronger in the coming months.
Coinme CEO Neil Bergquist explained:
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.
Established in the year 2014, Coinme currently operates in approximately 48 of the 50 states and is looking to offer its services and tools to international territories in the future. Last November, Coinme was chosen as the Deloitte Technology Fast 500 winner and was labeled the 78th fastest growing technology firm in North America.
Growing the Crypto Brand
MoneyGram has made a real name for itself in the crypto space by pairing with Ripple. The company has used the altcoin’s technology to boost its remittance payments system and in 2019, garnered a whopping $20 million investment from the company. Ripple CEO Brad Garllinghouse said at the time:
Last month, we announced that MoneyGram began using on-demand liquidity for payments to the Philippines, and we’re excited to support MoneyGram’s further expansion into Europe and Australia. Digital assets and blockchain technology have the potential to make a tremendous impact on cross-border payments. MoneyGram and Ripple are examples of that.