As a result of a Series A funding round, MoneyGram has invested a minority stake in crypto ATM operator Coinme.
MoneyGram announced its investment in Coinme on Wednesday, saying it had acquired a 4% stake - likely more than $764K given the company's valuation in June of $19.1 million - as part of strategic investment.
Mid last year, the two firms earlier announced a partnership to expand access to crypto-fiat exchanges.
"We are committed to regulations, which will enable us to provide a compliant bridge between digital assets and local fiat currency," said MoneyGram CEO Alex Holmes. "We will be able to expand access to crypto assets through our Coinme partnership while strengthening our partnership."
Coinme's cryptocurrency exchange and custody technology, coupled with MoneyGram's API-driven payments platform, allows them to provide bitcoin at point-of-sale (POS) locations throughout the country, allowing customers to sell or buy cryptocurrency.
MoneyGram users in the U.S. can currently exchange their Bitcoin (BTC) and crypto holdings for cash at point-of-sale outlets. According to Coinme, there are over 23,000 ATMs in the United States, including Coinstar and MoneyGram.
MoneyGram scaled back its collaboration with blockchain-based payments firm Ripple Labs in 2021. As it enters partnership with Coinme, it is only available for US-based customers.
Ripple was accused of securities violations by the U.S. Securities and Exchange Commission, which led to MoneyGram's suspension of the partnership in February 2021.
Consequently, MoneyGram disclosed last month that its customers across the globe would be able to transfer money directly to Paytm wallets in India.
According to the company, its digital transactions in India account for about half of all transactions received in that country. By 2021, that number will be six times greater than it was in 2019.