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The new MoneyGram non-custodial wallet will provide users a more flexible way to handle funds and make transactions cheaper.
International peer-to-peer payments and money transfer giant MoneyGram International has announced its intention to launch a non-custodial wallet to link crypto and fiat. According to money GramUsers will be able to exchange funds between fiat currency and usdc Stable currency.
MoneyGram wallet confirms the payments company’s interest in crypto. According to CEO Alex Holmes, the new wallet is MoneyGram’s way of using blockchain technology to help people transfer funds around the world. Holmes said the plan is to support fiat transfers through blockchain technology without forcing people to switch to cryptocurrency.
MoneyGram’s current service requires users to choose the destination to send funds to. The user cannot decide to stop the transfer and keep the funds in one fiat or another and can only send or receive the sent or selected fiat.
Holmes says crypto solves this problem. Using a non-custodial wallet, any user can deposit cash and then keep the funds in the wallet as USDC until they are ready to transfer to their preferred fiat.
MoneyGram’s non-custodial wallet will not work like other wallets on the market. Unlike most crypto wallets, compatibility will only be between MoneyGram wallets. Although this generally limits functionality and interaction with the crypto market, it protects the giant payments company from regulatory problems.
Using USDC for remittances also helps reduce cross-border transaction fees. At the moment, MoneyGram transactions typically cost customers around 3%. While this is lower than the 6.3% industry average noted by the World Bank, MoneyGram hopes to bring this fee down to less than 1% of typical digital transactions.
According to Holmes, the company will temporarily restrict wallet access in approximately 40 countries that do not have the capability for the digital KYC process. Holmes said:
“We are redefining the paradigm of what it really means to transfer money between fiat currencies… We are turning MoneyGram into a global ATM concept using blockchain.”
Other MoneyGram Crypto Efforts
Last month, cross-border payments platform Stellar announced Invested in MoneyGram and became a minority holder. Stellar plans to use the investment to support MoneyGram with blockchain technology research, digital businesses, and finding easier ways to help people handle money.
Last November, MoneyGram Pur: Trading crypto on its app lets users buy, sell, and hold cryptocurrencies. The facility was made possible through a strategic investment in Seattle-based crypto and cash exchange firm Coinme. According to MoneyGram Website, users can buy or sell seven cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), Stellar Lumens (XLM), Dogecoin (DOGE), and Polygon (MATIC). The service is available in all US states except New York, Idaho, Hawaii, and the District of Columbia.
Back in 2019, MoneyGram entered into a partnership agreement with Ripple for cross-border transactions and international settlements for US XRP. However, the agreement became problematic after the United States Securities and Exchange Commission (SEC) sued Ripple. After litigation, the agreement was put on hold and eventually cancelled. Ripple CEO Brad Garlinghouse officially announced End of partnership in 2021.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.
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