Honeycoin taps MoneyGram to expand crypto-to-fiat capabilities

The partnership is aimed at facilitating cross-border transactions using both cryptocurrency and fiat currencies in multiple countries.

Honeycoin taps MoneyGram to expand crypto-to-fiat capabilities
Design by Ifeoluwa Awowoye for Mariblock. 

Crypto company Honeycoin has integrated the MoneyGram Access cash-to-crypto solution. The integration, powered by the Stellar blockchain technology, allows users in Kenya, Uganda, Tanzania, Nigeria and Ghana to withdraw their USD Coin (USDC) holdings as cash at any supported MoneyGram location.

Key details 

  • Both Stellar and Honeycoin made the announcements via their social media handles. 
  • The integration is possible thanks to a 2022 partnership between MoneyGram and the Stellar Development Foundation to facilitate cash-to-crypto transactions using USDC, the stablecoin issued by Circle.

FYI: The USDC is a stablecoin whose value is pegged to the U.S. dollar one-to-one (i.e., one USDC gives you one U.S. dollar). Stablecoins were designed to be an antidote to the high volatility seen with cryptocurrencies such as bitcoin and ethereum. 

Why it matters  

  • Cross-border transactions to Africa are expensive. The World Bank’s first quarter report on global remittance prices once again had Sub-Saharan Africa as the most expensive place to send money.  
  • The average fee was 8.35%, compared to a global average of 6.24%. The average price for Middle East and North Africa (MENA) was just below the global average at 6.08%. 
  • Crypto-based remittances have been tipped as a tool for reducing the high fees. The moves from African crypto companies seek to bring those predictions to reality at scale.