In Brief:
- Moneygram buys a 4% stake in crypto operator Coinme.
- Coinme is the world’s earliest and fastest-growing cryptocurrency companies.
- MoneyGram’s strategic investment will help the crypto cash exchange company to expand globally and in other areas.
MoneyGram International has announced a strategic minority investment in Coinme, a prominent cryptocurrency cash exchange in the United States. MoneyGram acquired a 4% stake in Coinme.
This partnership completes Coinme’s Series A fundraising round and gives MoneyGram a direct ownership stake in one of the world’s earliest and fastest-growing cryptocurrency companies.
“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.
“Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies.”
This collaboration combines MoneyGram’s API-driven payments infrastructure with Coinme’s cryptocurrency exchange and custody technology to give bitcoin to thousands of individuals at point-of-sale (POS) locations around the country, allowing them to sell or buy cryptocurrency.
The investment follows a May 2021 partnership between the two firms aimed at expanding access to crypto-fiat exchanges. The two companies say they have other initiatives in the works that are expected to further enhance the value of their partnership.
“We see this as an incredible opportunity to continue our strong growth and build on our leading presence in the world of crypto,” said Neil Bergquist, Coinme CEO. “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.”
Coinme began operations in 2014 and now serves 48 states, with ambitions to expand internationally in the near future. Coinme was awarded the 78th fastest growing technology business in North America by the Deloitte Technology Fast 500 in November of 2021.
Last year MoneyGram connected its network with the Stellar blockchain through a partnership with the Stellar Development Foundation, allowing payments to be made using Circle Internet Financial’s USD Coin. The cooperation allowed for seamless conversions of USDC to fiat and vice versa.
