Key Takeaways:
Crypto exchange Kraken and global payments network MoneyGram announced a partnership Tuesday that will allow Kraken customers to withdraw crypto as cash across more than 100 countries, addressing a key gap in the digital asset ecosystem.
"They want to store in USD or USD equivalent," Kraken co-CEO Arjun Sethi told Fortune, explaining that the platform's international user base, particularly in regions with unstable currencies, has driven demand for reliable cash access. "They want to get yield. They want to do payments. They want to move money back and forth.”
The partnership gives Kraken’s millions of customers access to MoneyGram’s nearly 500,000 physical locations worldwide. Users can convert their crypto holdings into local fiat currency for pickup, bridging the gap between digital asset accounts and physical cash. The move targets a long-standing friction point for crypto users, where converting assets to spendable cash often involves delays or limited banking access.
For both companies, the deal marks a significant strategic step. It provides Kraken with a critical off-ramp to better serve its growing user base in emerging markets, where banking infrastructure can be unreliable. For MoneyGram, a legacy payments firm, it deepens its pivot toward digital asset infrastructure as it seeks to modernize its business.
The partnership is part of a broader strategic transformation for MoneyGram, which was taken private in a 2023 acquisition. The firm has been actively building out its crypto capabilities, including developing a noncustodial wallet and integrating stablecoins into its cross-border payment flows. By positioning itself as a bridge between the crypto world and the traditional financial system, MoneyGram aims to compete with newer fintech firms that have eroded its market share.
The Kraken-MoneyGram deal reflects a wider trend of convergence between digital asset platforms and traditional finance. As institutional players show more interest in tokenized assets, the plumbing that connects the two worlds is becoming more robust. Just this week, State Street and Galaxy Asset Management launched SWEEP, a tokenized cash-management fund on the Solana blockchain for institutional investors.
While Kraken has recently focused on institutional expansion by acquiring futures platform NinjaTrader and derivatives venue Bitnomial, this move shows its commitment to retail users in global markets. The company filed draft registration documents for a potential public listing in late 2025, and building out a comprehensive product suite that includes reliable off-ramps is a key part of that growth story.
This article is for informational purposes only and does not constitute investment advice.
