CEX.io Partners with MoneyGram and Stellar to Enhance Crypto Cash-In and Cash-Out Services

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Ruholamin Haqshanas

Author

Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto…

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Last updated:

September 18, 2024 08:59 EDT

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Crypto exchange CEX.io has partnered with financial services company MoneyGram and the Stellar blockchain to enhance its crypto cash-in and cash-out capabilities.

The collaboration aims to provide CEX.io users with access to seamless conversion between Circle’s USD Coin (USDC) and physical cash, available at participating MoneyGram locations, the firms said in a press release shared with CryptoNews.

The integration will initially target customers across regions such as the European Economic Area (EEA), Africa, and Latin America.

Currently, users in Austria, Hungary, Ireland, Lithuania, and Poland can utilize physical cash for these services, with more countries expected to join the list soon.

Stellar to Enable Cost-Effective Transactions

Stellar’s blockchain technology will also play a key role in the partnership, enabling efficient and cost-effective transactions.

Stellar, known for facilitating the tokenization of traditional currencies, will support CEX.io’s fiat-to-USDC and USDC-to-fiat conversion processes.

The blockchain’s integration is expected to streamline these services, ensuring smooth transactions for users at MoneyGram locations.

“Our integration with MoneyGram’s cash-to-crypto service built on the Stellar network increases the versatility of payment methods available to our six million global users,” said Arina Dudko, CEX.io’s Head of Corporate Payment Solutions.

“Not only will this give customers a greater range of access points, but the two-way functionality helps extend critical services to under or un-banked participants.”

Additionally, CEX.io’s collaboration comes amid the growing development of a euro-pegged stablecoin (EURT) on the Stellar network.

The stablecoin project, led by fintech firms Next Generation and Decta, aligns with the European Union’s Markets in Crypto-Assets Regulation (MiCA), which took effect in July 2024.

The full MiCA framework, which regulates stablecoins and crypto service providers, is expected to be fully enforced by December, further shaping the regulatory landscape for digital assets in Europe.

Last week, CEX.IO resumed operations in the UK after successfully complying with the Financial Conduct Authority’s (FCA) regulations.

The company had voluntarily paused its UK services following the introduction of new crypto asset financial promotion regulations by the FCA in October 2023.

Stellar Buys Minority Stake in MoneyGram

Earlier this year, the Stellar Development Foundation (SDF) announced that it has become a minority investor in payments provider MoneyGram International.

According to an announcement, the investment was made out of SDF’s cash treasury, using the assets set aside to support the SDF operations, rather than the Enterprise Fund, used to invest in startups and earlier-stage companies.

In February, the SDF announced the successful deployment of smart contracts on the Stellar network.

To encourage developers to embrace the Soroban smart contract platform, the SDF initiated a $100 million funding initiative in October 2022.