MoneyGram allows people in the US to withdraw their crypto holdings for cash
Leading financial institution MoneyGram announced that it would allow people in the United States to withdraw their cryptocurrency holdings for cash. The service makes it easier for people to exchange their cryptocurrencies for fiat money.
The money transfer company has teamed up with Crypto Exchange and ATM operator Coinme to bring this feature to its customers in the United States. Over the next few weeks, Coinme users will be able to buy or withdraw cryptocurrencies from the thousands of MoneyGram branches across the US.
MoneyGram said it will expand service to other parts of the world in the second half of the year. The MoneyGram Chairman and CEO commented: “This innovative partnership opens our business to a whole new customer segment as we are the first to pioneer a crypto-to-cash model by building a bridge with Coinme to connect Bitcoin to the local fiat currency.”
MoneyGram has already established a presence in the cryptocurrency space. The financial services company partnered with Ripple in 2018 to enable the use of XRP coins in cross-border transactions. However, the partnership was suspended earlier this year due to Ripple’s ongoing legal battle with the US Securities and Exchange Commission. MoneyGram’s competitor, Western Union, has yet to comment on whether it plans to support cryptocurrencies in the near future.
The cryptocurrency space has seen an influx of traditional financial institutions in recent months. With PayPal and Venmo, millions of their customers can now buy, sell and store cryptocurrencies on their platforms. Mainstream banks like Morgan Stanley, Goldman Sachs, JPMorgan, and BNY Mellon are involved in the cryptocurrency space to varying degrees. More and more listed companies are accepting cryptocurrencies as payment options or keeping them on their balance sheets. Tesla and MicroStrategy are some of the largest Bitcoin holders in this space.