MoneyGram Embraces Digital Assets, Plans Non-Custodial Wallet Launch For Early Q1

MoneyGram International plans to launch a noncustodial wallet service beginning in 2024.

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What Happened: The company's digital wallet, built by Cheesecake Labs, is powered by Stellar Network.

MoneyGram CEO Alex Holmes shared the development at the Stellar Development Foundation annual Meridian conference on Tuesday, Sept. 26. The wallet will assist consumers to leverage stablecoin technology for smooth movement from fiat to digital currency, to fiat again.

The wallet is slated to debut in the first quarter of 2024 in countries where so-called Know Your Customer capabilities (KYC) are implemented. Currently, around 40 countries support a digital KYC process. The service will be offered for zero fee until June 2024.

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Stellar Development Foundation acquired a minority stake in MoneyGram last month. Before that, private equity firm Madison Dearborn Partners purchased MoneyGram in a $1.8 billion deal.

Why It Matters: Users can deposit cash and hold it in USDC form which can be later used to convert to any currency. Any MoneyGram location can be used for cashing out digital assets and sending digital assets smoothly to other users in the wallet. Amidst the current scenario of scams, MoneyGram’s global compliance screening capability will be the biggest boon for all wallet users.

The service is an extension of MoneyGram's launching of a global fiat on- and off-ramp service for digital wallets. To date, the service has spread its reach to eight digital wallets on the Stellar blockchain wherein consumers can cash-out in 180+ countries and cash-in in 30+ countries across the world.

Image: MoneyGram