Coinme, a US-based cryptocurrency cash exchange service, has received a strategic minority investment from MoneyGram International.
While the size of the deal was not revealed, it gives MoneyGram a 4% ownership stake in Coinme. This deal will build on their existing partnership and foster more growth.
MoneyGram originally announced a partnership with Coinme in May 2021, with the goal of creating a crypto-to-cash model through a connection between bitcoin and fiat currency. This agreement expanded the access to bitcoin by establishing thousands of new point-of-sale locations to buy and sell bitcoin.
The pair of companies have a selection of additional initiatives in the pipeline.
MoneyGram chairman and CEO Alex Holmes said, “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 utilisation of blockchain and similar technologies.”
Coinme was founded in 2014 and is operational in 48 US states. It is also planning to expand internationally in the near future.
A consumer simply creates a Coinme account, finds their nearest Coinstar machine, inserts money into the kiosk and receive bitcoin. It also offers a mobile app that lets users buy, sell and receive bitcoin.
The FinTech company previously raised $5.5m in a funding round back in 2020.
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