Moneygram buys 4% stake in crypto ATM operator Coinme

Cash transmission community MoneyGram now has a minority funding in crypto ATM operator Coinme following a Sequence A funding spherical.

In a Wednesday announcement, MoneyGram stated it had bought a roughly 4% possession stake in Coinme — doubtless greater than $764,000, given its valuation of $19.1 million in June — as a part of a strategic funding within the crypto firm. The funding follows a Could 2021 partnership between the 2 companies aimed toward increasing entry to crypto-fiat exchanges.

“We proceed to be bullish on the huge alternatives that exist within the ever-growing world of cryptocurrency and our potential to function as a compliant bridge to attach digital property to native fiat foreign money,” stated MoneyGram CEO Alex Holmes. “Our funding in Coinme additional strengthens our partnership and compliments our shared imaginative and prescient to develop entry to digital property and cryptocurrencies.”

At present, U.S.-based MoneyGram customers are capable of trade their Bitcoin (BTC) and crypto holdings for money at point-of-sale shops. Coinme’s web site experiences greater than 23,000 ATM places in the USA, together with MoneyGram and Coinstar.

Whereas MoneyGram seemingly winds up its partnership with Coinme — presently solely working in the USA — it scaled again its collaboration with blockchain-based funds agency Ripple Labs in 2021. The 2 companies inked a strategic partnership settlement in 2019, processing billions of {dollars} via Ripple’s RippleNet and On-Demand Liquidity companies. Nevertheless, MoneyGram suspended the partnership in February 2021 following the U.S. Securities and Alternate Fee submitting a grievance towards Ripple, alleging securities violations.

Associated: MoneyGram launches USDC settlement utilizing the Stellar blockchain

On the time of publication, shares of MoneyGram inventory (MGI) are buying and selling for $7.55, having fallen roughly 2.5% within the final 24 hours.