Money transfer firm MoneyGram announced the launch of a non-custodial crypto wallet for cross-border remittances.
The money transfer firm, MoneyGram, announced the launch of its own crypto wallet to improve its business efficiency. One of the most striking characteristics of the initiative is that it is a non-custodial wallet. The portfolio is developed in partnership with Stellar Development Foundation.
Among the main functions of the address is to allow users to convert cryptocurrencies into fiat money when transferring. As reported by the firm, the portfolio will be officially launched during the first quarter of 2024.
This step is a fundamental one that recognizes the advantages of blockchain technology over previous cross-border shipping mechanisms. It is to be hoped that other similar companies will soon undertake similar initiatives that will allow them to attract more users. Commerce through the blockchain is faster and cheaper.
MoneyGram Crypto Wallet Will Be Self-Custody
The biggest advantage of the wallet, apart from the economy and speed of transactions, is its self-custodied nature. This means that users manage their own money directly with the network without the company having anything to do with it.
Simply put, the firm has no control over user funds, which nullifies the possibility of losses due to possible bankruptcy. In this way, from anywhere in the world, merchants will be able to exchange through this new wallet from the payment company.
On the other hand, it was learned that the company will apply compliance control with all users of its platform. Consequently, the wallet, despite allowing greater autonomy and security, will not be completely supportive of people’s financial privacy.
“Our vision of connecting the world’s communities by empowering our clients through innovative financial solutions takes a new step today,” said the firm’s CEO, Alex Holmes. He added that the wallet takes the company’s mission one step further.
MoneyGram’s crypto wallet will be fee-free during the first half of 2024. Stellar’s blockchain technology will be combined with the payments company’s fiat on- and off-ramps.
The Portfolio Will Continue its Evolution Process
A positive element of this initiative is that it does not intend to remain ossified once it is launched for users. Contrary to this, the company says that, from day one, they will begin the process of adding new features to the wallet. However, the firm did not offer further details of what these new functions could be.
In any case, this is not MoneyGram’s first initiative in the world of digital currencies. In that sense, it is notable that this year (June) the company launched a program that involves USDC, Circle’s stable currency, which allows withdrawals in crypto.
Likewise, in November 2022, the firm gave the green light to customers to be able to buy cryptocurrencies directly from its platform. In this way, the crypto wallet represents a consolidation of MoneyGram’s new strategy to open up to new technology.
As expected, this initiative marks a stimulus for other companies in the same sector to take similar actions. It should not be lost sight of that blockchain technology stands as a powerful tool to reduce costs. The big obstacle for many companies when adopting it is the fact that it is a very new technology.
By Leonardo Pérez