Kraken and MoneyGram Join Forces to Offer Crypto-to-Cash at 500,000 Global Locations

Expanding Crypto Accessibility Through Physical Cash Outlets

Cryptocurrency exchange Kraken has teamed up with legacy payments provider MoneyGram to allow users to convert digital assets into physical cash at nearly 500,000 locations across more than 100 countries. This partnership, first reported by Fortune, targets a persistent pain point in the crypto ecosystem: the difficulty of turning digital holdings into spendable currency without going through multiple steps or facing banking limitations.

While blockchain transfers are near-instant, cashing out often requires a bank account, a compatible card, or a time-consuming process. By tapping into MoneyGram's vast network of brick-and-mortar outlets, Kraken aims to provide a straightforward off-ramp for its global user base. The service will let customers exchange crypto for local fiat currency at these locations, with a variable exchange fee applied to each transaction.

Driving Demand in Regions with Unstable Currencies

The initiative comes as Kraken sees growing usage in emerging markets where local currencies are volatile and traditional banking infrastructure is limited. In these areas, many users rely on crypto platforms as alternatives to banks, storing value in stablecoins (like USDC or USDT) and using them for payments and savings.

Kraken co-CEO Arjun Sethi highlighted the trend in an interview with Fortune, noting, "They want to store in USD or USD equivalent. They want to get yield. They want to do payments. They want to move money back and forth." The need for dependable cash access has become a priority as these users seek to bridge digital balances with everyday expenses. The MoneyGram partnership directly addresses this by providing a trusted, widespread network for cashing out.

Bridging Digital and Physical Finance

The collaboration marks a convergence between the crypto space and traditional financial networks. For Kraken, it adds a crucial service that complements its broader product suite, which already includes spot trading, futures, and derivatives. The exchange has been on an expansion spree, acquiring platforms like NinjaTrader and Bitnomial to compete across asset classes. It is also reportedly preparing for a potential public listing later this year.

For MoneyGram, the deal is part of a strategic overhaul. The company has lost ground to fintech and digital banks in recent years and is now betting on crypto to stay relevant. It has developed a noncustodial wallet and integrated stablecoins into its payment flows, aiming to reduce costs and settlement delays associated with traditional cross-border transfers. A private equity acquisition in 2023 gave MoneyGram the flexibility to pursue this transformation outside the public eye.

How the Partnership Works

Kraken users will be able to initiate a cash-out through the exchange's platform, choosing a nearby MoneyGram agent location for pickup. The crypto is converted to local currency at a rate that includes a variable fee. While exact fee structures were not disclosed, they are expected to be competitive with other crypto-to-cash services.

The service is launching in phases, beginning with select countries before rolling out to the full network of nearly 500,000 locations across more than 100 nations. This includes outlets in North America, Europe, Asia, Africa, and Latin America.

Impact on the Crypto Ecosystem

This partnership is a significant step toward mainstream crypto adoption. By offering a reliable off-ramp into cash, it removes a barrier that has hindered casual users and those in unbanked or underbanked regions. It also signals that traditional financial firms are serious about integrating digital assets into their infrastructure.

MoneyGram's pivot to crypto is not new; the company has been experimenting with blockchain-based settlements for years. However, this agreement with Kraken is its largest tie-up with a crypto exchange to date. It positions MoneyGram as a key infrastructure provider for the digital asset economy, while Kraken gains a physical presence that many crypto-native companies lack.

Looking Ahead

The deal is expected to accelerate Kraken's growth in emerging markets, where cash remains king despite the rise of mobile money. By combining digital convenience with physical cash access, the exchange can attract users who were previously hesitant to fully commit to crypto. For MoneyGram, it offers a path to modernize its brand and tap into a younger, tech-savvy demographic.

As the lines between crypto and traditional finance continue to blur, partnerships like this one may become the norm. The ability to seamlessly move between digital assets and physical cash could make cryptocurrencies more practical for everyday use, driving further adoption worldwide.