MoneyGram buys 4% of crypto ATM operator Coinme

Previously, the two companies reached a cooperation in May 2021 to expand the use of cryptocurrency-fiat currency exchanges.

After the Series A financing, MoneyGram, the remittance network, has now made a minority investment in crypto ATM operator Coinme.

In a statement on Wednesday, MoneyGram stated that as part of its strategic investment in the crypto company, it purchased approximately 4% of Coinme's equity - considering the company's valuation in June was $19.1 million. The investment may exceed US$764,000. Previously, the two companies reached a cooperation in May 2021 to expand the use of cryptocurrency-fiat currency exchanges.

MoneyGram CEO Alex Holmes said: "We continue to be optimistic about the huge opportunities in the growing cryptocurrency world and our ability to operate as a compliance bridge connecting digital assets and local fiat currencies. Our investment in Coinme has been further strengthened. Has strengthened our partnership and promoted our shared vision of expanding the use of digital assets and cryptocurrencies."

Currently, MoneyGram users in the United States can exchange their Bitcoin and cryptocurrency holdings for cash at the point of sale. Coinme website reported that the United States has deployed more than 23,000 ATM machines, including MoneyGram and Coinstar.

Although MoneyGram seems to have ended its cooperation with Coinme-currently only operating in the United States-it scaled back its cooperation with blockchain-based payment company Ripple Labs in 2021. The two companies signed a strategic cooperation agreement in 2019 to process billions of dollars in funds through Ripple's RippleNet and on-demand liquidity services. However, MoneyGram suspended the partnership in February 2021 after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple for securities violations.

As of this writing, MoneyGram stock (MGI) is trading at $7.55, which has fallen by approximately 2.5% in the past 24 hours.