MoneyGram acquires 4% stake in crypto ATM firm Coinme

MoneyGram acquires 4% stake in crypto ATM firm Coinme

US-based cross-border P2P payments and money transfer company MoneyGram has taken yet another initiative in the crypto industry after it partnered with Stellar Foundation in October to offer instant payments service via USDC.

The company has now acquired a minor “strategic” stake in Coinme, the first licensed Bitcoin ATM company in the US, following the ATM operator’s Series A funding round. Precisely, MoneyGram has bought a 4% ownership stake in Coinme.

MoneyGram previously partnered with the Kiosk operator in May 2021 to install some ATMs at MoneyGram’s selected stores in the United States.

“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,” said MoneyGram CEO Alex Holmes in the press release. He added:

“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.”

According to the announcement, the stake will allow MoneyGram to support Coinme’s international expansion plans. Coinme currently has more than 23,000 ATM locations in the United States, making it the second-largest crypto ATM operator in the US.

MoneyGram previously introduced an On-Demand Liquidity service as part of its partnership with payments provider Ripple in 2019. However, following the SEC lawsuit against Ripple and unclear virtual currency regulations in the United States, MoneyGram ended the partnership in March 2021.

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