MoneyGram International has obtained a 4% ownership stake in Coinme as part of a strategic minority investment in the US-based cryptocurrency cash exchange.

The investment, whose size was not disclosed, will close Coinme’s Series A financing round.

The deal follows MoneyGram’s existing partnership with Coinme. The two companies teamed up in May 2021 to launch a crypto-to-cash model by setting up a bridge to connect bitcoin to local fiat currency.

MoneyGram and Coinme have additional initiatives in the pipeline that are expected to continue to increase the value of the partnership.

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.”

Established in 2014, Coinme has a footprint across 48 US states and plans to expand internationally soon.

Coinme CEO Neil Bergquist said: “We see this as an incredible opportunity to continue our strong growth and build on our leading presence in the world of crypto.

“With MoneyGram’s global network and infrastructure, both the Company’s continued partnership and strategic investment will help us accelerate our growth and international expansion.”

Other moves by MoneyGram

In December 2021, MoneyGram joined forces with India’s Paytm Payments Bank to enable its customers around the globe to send money directly to Paytm Wallets in India.

The same month, the firm teamed up with digital wallet urpay to facilitate cross-border money transfers from Saudi Arabia. This alliance is expected to go live for urpay users in early 2022.

In November, MoneyGram integrated Bangladesh’s mobile financial service provider bKash to expand its mobile wallet network.