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MoneyGram to launch non-custodial fiat-USDC wallet in partnership with Stellar network

In this post:

  • MoneyGram announces the launch of a non-custodial digital wallet in partnership with the Stellar Development Foundation, set to debut in Q1 2024. The wallet aims to redefine cross-border payments and will be a zero-fee service until June 2024.
  • The wallet will allow users to cash out digital assets at MoneyGram locations and send assets to other wallet users. It will also feature MoneyGram’s global compliance screening for all users.
  • MoneyGram CEO Alex Holmes emphasizes that the wallet is part of the company’s broader strategy to bridge the gap between fiat and digital currencies, while still acknowledging the importance of cash in the global financial system.

MoneyGram, a global financial technology company, has announced its plans to launch a non-custodial digital wallet. Slated for an official debut in the first quarter of 2024, the wallet aims to revolutionize cross-border payments. Moreover, it will allow consumers to effortlessly transition between fiat and digital currencies. This move comes as part of MoneyGram’s collaboration with the Stellar Development Foundation, a partnership that has already made MoneyGram a significant player in providing blockchain access worldwide.

The digital wallet will offer users the ability to cash out their digital assets at participating MoneyGram locations. Additionally, it will facilitate the sending of digital assets between users. Significantly, MoneyGram will apply its global compliance screening to all wallet users, ensuring a secure and regulated environment.

Expanding the digital frontier

In 2022, MoneyGram launched a unique global fiat on and off-ramp service for digital wallets. This service has since expanded to eight digital wallets on the Stellar blockchain. It allows consumers to cash out in more than 180 countries and cash in across 30+ nations. The upcoming non-custodial digital wallet will build on this service, offering a zero-fee service until June 2024. Developed by Cheesecake Labs in partnership with MoneyGram, the wallet will leverage both the Stellar network and MoneyGram’s existing fiat services.

As the wallet rolls out, MoneyGram plans to introduce new features that will further integrate the worlds of international money transfers and blockchain payments. Alex Holmes, MoneyGram’s CEO, expressed enthusiasm about the wallet’s potential to offer consumers more options in the digital economy. He emphasized the company’s commitment to speed, efficiency, and trust.

While the crypto industry continues to seek practical applications, remittances remain a challenging area. Traditional cross-border payments often suffer from slow processing times and high fees. However, MoneyGram’s approach aims to tackle these issues head-on. Holmes has been cautious about the role of crypto, acknowledging that it won’t replace the importance of cash. Yet, the non-custodial wallet represents a significant step in MoneyGram’s ongoing experiments with blockchain technology.

The wallet will come with full “know-your-customer” requirements and will be compatible only with other MoneyGram wallets. This strategy aims to shield MoneyGram from the regulatory uncertainties often associated with decentralized finance. According to Holmes, the average global cost to consumers for using MoneyGram services is around 3%, lower than the industry average of 6.3%.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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