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Moneygram buys 4% stake in crypto ATM operator Coinme

Moneygram buys 4% stake in crypto ATM operator Coinme
Written by publisher team

Money transfer network MoneyGram now has a lower investment in crypto ATM operator Coinme after a Series A funding round.

In an announcement Wednesday, MoneyGram said it had bought a roughly 4% ownership stake in Coinme — likely more than $764,000, given its $19.1 million valuation in June — as part of a strategic investment in the crypto company. This investment comes on the heels of a May 2021 partnership between the two companies aimed at expanding access to cryptocurrency exchanges.

“We remain optimistic about the huge opportunities that exist in the ever-growing world of cryptocurrency and our ability to act as a compatible bridge linking digital assets to local fiat currency,” said Alex Holmes, CEO of MoneyGram. It further enhances our partnership and complements our shared vision of expanding access to digital assets and cryptocurrencies. “

Currently, MoneyGram users in the US can exchange Bitcoin (BTC) and crypto holdings for cash at outlets. The Coinme website lists more than 23,000 ATM locations in the United States, including MoneyGram and Coinstar.

While MoneyGram apparently ended its partnership with Coinme – which currently only operates in the US – it scaled back its collaboration with blockchain-based payments company Ripple Labs in 2021. The two companies signed a strategic partnership agreement in 2019, to process billions of dollars through Ripple’s RippleNet and on-demand liquidity services. However, MoneyGram suspended the partnership in February 2021 after the US Securities and Exchange Commission filed a complaint against Ripple, alleging securities violations.

Related: MoneyGram launches USDC settlement using the Stellar blockchain

At press time, MoneyGram (MGI) shares are trading for $7.55, having fallen nearly 2.5% in the past 24 hours.