Leading money transfer business Moneygram revealed plans to work with the Stellar Development Foundation to build its own non-custodial digital wallet. When transmitting cross-border payments, the wallet will let users convert between fiat and digital currencies.
Moneygram and Stellar collaborate to develop a non-custodial digital wallet.
The new digital wallet, which is scheduled to go live in the first quarter of 2024, will enable Moneygram clients to withdraw their digital assets from any Moneygram facility that takes part. Users can send digital assets to other wallet users via the wallet as well. However, the fact that Moneygram would apply its compliance screening to all wallet users may be problematic for privacy activists.
According to Alex Holmes, CEO of Moneygram, "our vision to connect the world's communities by empowering our customers through innovative financial solutions takes another step forward today." According to Holmes, "The Moneygram non-custodial digital wallet advances this mission even further."
The non-custodial wallet, which is free to use until June 2024, uses the Stellar blockchain network and is integrated with Moneygram's current fiat on- and off-ramps. After the wallet's debut, Moneygram intends to increase its functionality by adding additional features that tighten the connection between international money transfers and blockchain payments.
Building on its 2022 cryptocurrency investments, Moneygram introduced a USDC crypto-to-cash scheme last June that allows users to withdraw digital currencies. In its money transfer app, Moneygram's users have been able to buy and sell cryptocurrencies directly since November. The company's most recent endeavor to broaden access to digital assets is represented by the non-custodial wallet.
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