MoneyGram plans to launch a non-custodial digital wallet that will offer new ways to send and receive cross-border payments.
The wallet is set to debut in the first quarter of 2024 and will allow users to seamlessly move from fiat currency to digital currency and back again, the global FinTech company said in a Tuesday (Sept. 26) press release.
MoneyGram CEO Alex Holmes said in the release that the launch marks another step forward in the company’s vision of connecting the world’s communities via financial solutions.
“The MoneyGram non-custodial digital wallet advances this mission even further,” Holmes said. “We’re thrilled to have the vision, strategic plans, innovative technology and expansive retail network in place to continue offering consumers access to the digital economy, but now further backed by our global reputation for speed, efficiency and trust.”
Once launched, users of the wallet will be able to cash out their digital assets at any participating MoneyGram location, increasing the utility of their holdings, according to the press release. They will also have the ability to send digital assets to other users within the wallet. MoneyGram will apply its global compliance screening capabilities to all wallet users.
MoneyGram’s non-custodial digital wallet builds upon its existing global fiat on- and off-ramp service for digital wallets, the release said. Launched in 2022, this service created a bridge between fiat and digital currencies, allowing consumers to cash out in over 180 countries and cash in in over 30 countries. The new non-custodial digital wallet will leverage the Stellar blockchain and MoneyGram’s fiat on- and off-ramp services integrated with the Stellar network.
As MoneyGram rolls out the wallet in the coming year, it plans to expand its capabilities and introduce new features that bridge the worlds of international money transfers and blockchain payments, per the release.
MoneyGram launched its existing service for converting stablecoins to hard currency in 2022 in partnership with the Stellar blockchain. The debut of the service came amid increased popularity for remittances.
The global remittance market is being reshaped by digital disruption, PYMNTS reported in May. Some of the players that have been around for decades have been shifting to digital channels, but they are facing competition from digital-only upstarts.