Kraken Partners With MoneyGram to Let Users Withdraw Crypto as Cash at Over 480,000 Locations Worldwide
For all the talk of crypto being instant and borderless, one hurdle has remained stubbornly analog: turning digital coins into physical cash. Kraken, one of the largest cryptocurrency exchanges, is now tackling that problem head-on. Starting Tuesday, the exchange announced a partnership with MoneyGram that will allow its users to withdraw fiat currency—dollars, euros, and other local currencies—at MoneyGram locations across more than 100 countries.
The move addresses a long-standing pain point for Kraken’s global user base. While crypto transfers happen in seconds, cashing out has often meant navigating slow bank transfers, high fees, or limited options—especially in emerging markets. “This off ramp is really important,” Arjun Sethi, Kraken’s co-CEO, told Fortune. “Many of our customers in countries with volatile currencies use Kraken like a bank. They want to store value in USD or USD equivalents, earn yield, make payments, and move money freely.”
MoneyGram, once known primarily for paper money orders and cross-border remittances, has been quietly reinventing itself over the past three years. The company has built a noncustodial crypto wallet, integrated stablecoins into its operations, and was taken private by a private equity firm in 2023. “This is just another step in digitizing our business,” said Anthony Soohoo, MoneyGram’s CEO. “We’re not the same company we were a decade ago.”
Kraken’s partnership with MoneyGram comes as the exchange prepares for a potential initial public offering. Over the past year, it has acquired the U.S. futures exchange NinjaTrader and the derivatives platform Bitnomial. The exchange began the IPO process in November but has not set a timeline for going public.
Industry reactions have been mixed. “This is exactly the kind of bridge the crypto world needs—real-world cash access without the headache,” said Maria Torres, a fintech analyst based in Mexico City. “For users in Latin America, this could be a game-changer.” But not everyone is convinced. “Great, another partnership that sounds good on paper but will probably come with hidden fees and terrible exchange rates,” said James Okonkwo, a Nigerian crypto trader and frequent MoneyGram user. “I’ve been burned before. Let’s see if they actually deliver.”
Kraken users will pay a variable exchange fee when cashing out at MoneyGram locations, though the companies have not disclosed specific rates. With nearly half a million locations worldwide, the network offers a level of accessibility that few crypto-to-cash solutions can match—especially in regions where traditional banking infrastructure is thin.