MoneyGram is set to introduce a non-custodial wallet aimed at facilitating seamless fund transfers between fiat currencies and the US dollar stablecoin (USDC).
This development follows the Meridien Web3 event organized by Stellar blockchain and also represents MoneyGram’s continued partnership with the Stellar blockchain to power its wallet services.
MoneyGram is a global financial services company that provides money transfer and other financial services around the world.
The company offers a range of services, including online and in-person domestic and international money transfers, mobile phone top-ups, bill payments, money orders, and prepaid card loading.
MoneyGram has a vast global network, with about 350,000 agency locations in more than 200 countries and territories.
The company provides its services to individuals and businesses through a network of agents and financial institutions. MoneyGram is headquartered in Dallas, Texas, with offices around the world.
Cash is still important
An examination of the objective behind the new non-custodial platform reveals that it will utilize blockchain technology to facilitate global fund transfers, with a focus on ensuring users can eventually convert their funds to cash rather than cryptocurrencies.
In an interview with Fortune, MoneyGram CEO Alex Holmes noted that the company’s digital transformation over the past five years is driven by the need for the current trend in the global financial ecosystem.
“We’re redefining paradigms around what it really means to move money between fiat currencies.”
He added that the goal is not to eliminate cash as it still remains a huge part of the global financial system.
Users of the wallet will be allowed to deposit cash and hold it as USDC before deciding when to convert it into another currency, providing more flexibility.
According to MoneyGram, all users will be mandated to provide personal details before using the wallet. This will ensure that KYC is done in alignment with a regulatory framework within the traditional financial space.
Moneygram and Ripple
As far back as 2019, MoneyGram entered the cryptocurrency space through a partnership with Ripple. Ripple made an investment in MoneyGram, with the goal of utilizing Ripple’s technology and XRP cryptocurrency for cross-border payments.
As part of this partnership, MoneyGram integrated Ripple’s xRapid platform, which utilizes XRP as a bridge currency to enhance the efficiency of cross-border transactions. However, the partnership which received attention in the cryptocurrency community, was terminated in 2021.
