International money transfer giant MoneyGram announced that the company has made a strategic minority stake in Coinme, a major cryptocurrency exchange in the United States. MoneyGram said it has an equity stake of about under an investment strategy that is to continue a partnership between the two companies in May 2021 to establish a crypto-to-cash model by building a bridge to connect Bitcoin to the local 4 percent of Coinme acquired fiat currency. The investment also marks the completion of Coinme’s Series A funding round to advance its international expansion plans, in which MoneyGram is expected to play a key role.
“At MoneyGram, we remain optimistic about the vast alternatives that exist in the ever-expanding world of cryptocurrency and our potential to act as a lawful bridge to tie digital property to domestic fiat foreign currency,” said the chairman and CEO of MoneyGram, Alex Holmes.
“Our Coinme funding further strengthens our partnership and complements our shared imagination and foresight to expand access to digital goods and cryptocurrencies,” added Holmes.
Back in May 2021, the money transfer company partnered with Coinme to roll out Bitcoin kiosks at selected MoneyGram physical kiosk locations in the US, expand Coinme’s reach and make it easier to buy Bitcoin in person across the country.
“Our unique cash-to-bitcoin offering with Coinme, announced in May 2021, opened our business to a whole new segment of customers and we couldn’t be happier with our progress,” added Holmes.
In 2020, the kiosk operator had partnered with Coinstar, a collaboration that spurred “strong national momentum and growth” in Coinme’s core cryptocurrency business in just a few months, resulting in one of the most successful quarters in the industry to date.
MoneyGram’s investment also came after Coinme was selected as a Deloitte Fast 500 company in November and named the fastest growing company in Washington state and 78th in North America. Coinme was founded in 2014 and claims to currently operate in 48 US states.
“With MoneyGram’s global network and infrastructure, the company’s continued partnership and strategic investments will help us accelerate our growth and international expansion,” said Neil Bergquist, CEO of Coinme.
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