MoneyGram, the Dallas-based money transfer service, has completed a strategic minority investment in Coinme, a US-based cryptocurrency exchange. The investment gives MoneyGram a 4% ownership stake in Coinme and closes out the exchange’s Series A financing round.
MoneyGram buys minority stake in crypto company Coinme
The investment builds on the previous partnership between MoneyGram and Coinme in May 2021. The partnership was originally created to promote a crypto model by connecting Bitcoin to fiat. The two companies are working on complementary initiatives together.
“Our unique cash-to-bitcoin offering with Coinme, announced in May of 2021, opened our business to an entirely new customer segment, and we couldn’t be more pleased with our progress. As we accelerate our innovation efforts, partnerships with startups like Coinme will further our position as the industry leader in the utilization of blockchain and similar technologies,” Alex Holmes, MoneyGram Chairman, and CEO said in a statement.
It is reported that the service will be extended to other countries this year. The company also offers concierge trading and other services for deep-pocketed individuals on top of operating cryptocurrency kiosks.
Coinme was founded in 2014 and operates in 48 US states, with future plans to expand globally. It was recently named by Deloitte as one of the fastest-growing technology companies in North America.
Coinme previously raised $1.5 million from Xpring, Ripple’s open development, and investment arm, in its Series A-1 funding round. Meanwhile, MoneyGram officially severed ties with Ripple last March due to the ongoing U.S. Securities and Exchange Commission (SEC) lawsuit against the company. And now MoneyGram has partnered with a company invested by Ripple.
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