MoneyGram Introduces Non-Custodial Wallet to Simplify Cross-Border Transactions

7:12 pm
September 26, 2023
Featured image for “MoneyGram Introduces Non-Custodial Wallet to Simplify Cross-Border Transactions”

The new MoneyGram non-custodial wallet will provide a more flexible way for users to handle funds and make transactions cheaper.

MoneyGram International, a leading international peer-to-peer payments and money transfer company, has announced its plan to launch a non-custodial wallet that bridges the gap between cryptocurrency and fiat currency. The MoneyGram wallet will allow users to exchange funds between fiat currency and the USDC stablecoin.

The introduction of this wallet showcases MoneyGram’s interest in cryptocurrency and its exploration of blockchain technology to facilitate global fund transfers. According to CEO Alex Holmes, the goal is to support fiat transfers using blockchain technology, without the requirement of owning cryptocurrencies.

MoneyGram’s current service only allows users to send funds to a designated destination, without the option to hold funds in a specific fiat currency or pause the transfer. Holmes explains that the non-custodial wallet addresses this limitation by enabling users to deposit cash and hold it as USDC until they are prepared to transfer it to their preferred fiat currency.

The MoneyGram Wallet

The MoneyGram non-custodial wallet functions differently from other wallets on the market. It is only compatible with other MoneyGram wallets, limiting its interaction with the broader crypto market. However, this approach helps MoneyGram avoid potential regulatory complications.

By using USDC for remittances, MoneyGram aims to reduce cross-border transaction fees. Currently, MoneyGram transactions typically incur a fee of around 3%. However, the company aims to significantly decrease this fee to less than 1%, aligning with the lower fees associated with digital transactions.

Initially, access to the wallet will be restricted to approximately 40 countries that can support the digital Know Your Customer (KYC) process.

Other MoneyGram Crypto Initiatives

In a recent development, cross-border payments platform Stellar made an investment in MoneyGram, becoming a minority holder. Stellar plans to assist MoneyGram with blockchain technology research, digital businesses, and finding more convenient ways for people to handle money.

Last year, MoneyGram introduced crypto trading in its app through a partnership with Seattle-based crypto and cash exchange firm Coinme. The feature allows users to buy, sell, and hold cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), Stellar Lumens (XLM), Dogecoin (DOGE), and Polygon (MATIC).

In 2019, MoneyGram partnered with Ripple to utilize XRP for cross-border transactions and international settlements. However, the partnership was put on hold and eventually canceled following a lawsuit filed against Ripple by the United States Securities and Exchange Commission (SEC).

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing, and is an avid movie lover.

Summary:

MoneyGram, one of the largest peer-to-peer payments and money transfer companies, is launching a non-custodial wallet to enable users to exchange funds between fiat currency and the USDC stablecoin. The wallet aims to provide a more flexible way for users to handle funds and reduce cross-border transaction fees. MoneyGram’s interest in crypto is evident through this venture, as well as its previous introduction of crypto trading and partnerships with blockchain companies like Stellar and Ripple.

FAQs:

1. What is a non-custodial wallet?

A non-custodial wallet is a type of cryptocurrency wallet that allows users to have full control and ownership of their funds. Unlike custodial wallets, which entrust the management of funds to a third party, non-custodial wallets give users the responsibility of storing and securing their own funds.

2. How will MoneyGram’s non-custodial wallet benefit users?

The non-custodial wallet will provide users with a more flexible way to handle funds, allowing them to hold funds in different fiat currencies or convert them to cryptocurrencies like USDC. Additionally, MoneyGram aims to reduce cross-border transaction fees, making remittances more affordable for users.

3. In which countries will the MoneyGram wallet be initially available?

The MoneyGram wallet will initially be accessible in approximately 40 countries that have the capacity to support the digital Know Your Customer (KYC) process.

4. What cryptocurrencies can be traded on the MoneyGram app?

Currently, users can buy, sell, and hold Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), Stellar Lumens (XLM), Dogecoin (DOGE), and Polygon (MATIC) on the MoneyGram app.

5. What happened to MoneyGram’s partnership with Ripple?

The partnership between MoneyGram and Ripple, which involved the use of XRP for cross-border transactions, was put on hold and eventually canceled following a lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple. The partnership was officially ended in 2021.


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