MoneyGram, the wire transfer services provider, has announced plans to launch a non-custodial digital wallet. This move comes as more financial services providers are entering the non-custodial digital wallet space, leveraging stablecoin technology to allow customers to move fiat money to digital currency and back to fiat.
Non-custodial digital currency wallets have become a popular use case for the crypto industry, with major banks and financial institutions getting involved. Companies such as Standard Chartered, DZ Bank AG, BBVA Switzerland, BBVA NewGen, and BNP Securities Services have all embraced non-custodial digital wallets.
PayPal recently launched the PayPal USD stablecoin, enabling US customers to transfer PYUSD to compatible wallets and make person-to-person payments. This trend highlights the growing interest in self-custody wallets and the potential for disruption in the stablecoin space.
Self-custody wallets give customers full control over their digital assets, allowing financial institutions to offer a range of crypto services while adhering to regulatory processes. With the launch of its non-custodial digital wallet, MoneyGram aims to enable customers to cash out their digital assets from any participating MoneyGram locations worldwide, increasing the utility of their holdings.
In addition to cashing out, the wallet will also support in-wallet digital currency transfers between users, expanding MoneyGram’s money transfer services to the blockchain. The company will apply its global compliance screening capabilities to all wallet users, ensuring regulatory compliance.
Alex Holmes, the CEO of MoneyGram, commented on the announcement, stating that the launch of the non-custodial digital wallet is another step forward in their vision to connect the world’s communities. MoneyGram has already made significant strides in creating equitable access to the global financial system through its partnership with SDF, becoming the largest fiat on and off-ramp provider offering blockchain access worldwide.
This announcement follows MoneyGram’s launch of a global fiat on and off-ramp service last year, which now supports eight digital wallets on the Stellar blockchain. Consumers can cash out digital currencies in over 180 countries and cash in in more than 30 countries around the world.
As more financial services providers embrace non-custodial digital wallets, the industry is poised for further growth and innovation. MoneyGram’s entry into the space brings more options for customers to engage with digital currencies and expands the utility of digital assets.
