- MoneyGram is launching a non-custodial digital wallet.
- The wallet will help users move funds from fiat to digital currency and back again.
- MoneyGram is leveraging the Stellar Development Foundation’s open-source public blockchain Stellar for the launch.
When you think of the top crypto players in fintech, MoneyGram may not come to mind. However, the 83-year-old company continues to position itself at the forefront of the crypto space. As evidence of this, MoneyGram unveiled its non-custodial digital wallet today.
MoneyGram will launch the non-custodial digital wallet in the first quarter of next year. The wallet will help MoneyGram users leverage stablecoins to move funds from fiat to digital currency and back again. The new wallet will effectively serve as a bridge between international money transfers and blockchain payments.
With the non-custodial digital wallet, users will be able to cash out their digital asset holdings at physical MoneyGram locations, making their funds more liquid than before. The wallet, which will leverage MoneyGram’s compliance screening capabilities, will also offer account-to-account money transfers, allowing users to send digital assets to other users in the wallet.
The wallet leverages MoneyGram’s partnership with the Stellar Development Foundation (SDF), the organization behind open-source public blockchain Stellar that allows money to be tokenized and transferred globally. MoneyGram and SDF originally partnered in October of last year, when the two piloted the cash-to-crypto functionality.
“Through the services we provide in partnership with SDF, MoneyGram has made strides to create equitable access to the global financial system, having become the single largest fiat on and off-ramp provider offering blockchain access worldwide,” said MoneyGram CEO Alex Holmes.
The “non-custodial” element of MoneyGram’s wallet is notable because it will offer users control over their own private keys, which can offer more security. And because users don’t rely on a third party to manage their funds, they are less dependent on centralized institutions, which makes the wallet more decentralized, and ultimately offers a higher level of anonymity because they don’t need to provide personal information when creating or using the wallet.
After its launch, MoneyGram’s non-custodial digital wallet will be fee-free until June of 2024. The company also notes plans to expand the wallet’s capabilities with new features next year.
MoneyGram first launched its fiat on-and-off-ramp service for digital wallets in 2022 and has since expanded the service to eight digital wallets on the Stellar blockchain. Today, consumers can cash-out in 180+ countries and cash-in in 30+ countries around the world.