Kraken and MoneyGram have launched a partnership that lets Kraken users withdraw cash from their crypto balances through MoneyGram’s network of roughly 500,000 physical locations across about 100 countries. The service offers instant or near-instant cash payouts, backed by Kraken’s liquidity and compliance infrastructure.
Crypto balances are being routed into physical cash networks
The new service is aimed at a basic but stubborn problem in crypto usage: turning digital asset holdings into spendable local currency. In markets where cash remains common and banking access is limited or fragmented, the ability to move from an exchange account to a nearby payout point can matter more than adding another on-chain feature. Reports said fees will vary by location and transaction details.
Kraken co-CEO Arjun Sethi said digital assets only matter at scale when they can work with the financial systems people already rely on. He said the company is combining Kraken’s liquidity, exchange, and compliance infrastructure with MoneyGram’s global payout network to build a scalable bridge between digital asset markets and local cash economies.
The companies are planning bank deposits and remittance flows next
The rollout is not limited to cash withdrawals. Kraken and MoneyGram said they plan to expand the offering to include local bank deposits and cross-border remittance flows, pointing to a broader payments push rather than a standalone cash-out tool. That approach extends existing financial rails instead of trying to replace them outright.
For the sector, this model targets the “last mile” of crypto-to-fiat access. Exchanges can supply liquidity, while payment networks provide the physical distribution layer. Put together, the path from digital assets to local economies becomes shorter and easier to reach.
MoneyGram and Kraken are both widening their crypto infrastructure footprint
MoneyGram has been building out its role in digital asset infrastructure through several partnerships. The company previously worked with Fireblocks on stablecoin settlement for global transfers and has also explored physical crypto access points through investments in Bitcoin ATM providers. The Kraken deal adds a direct fiat liquidity outlet for retail crypto holders.
Kraken is also moving beyond its core exchange business. Earlier this week, parent company Payward completed its acquisition of derivatives exchange Bitnomial, enabling crypto derivatives offerings in the US. The firm has also secured a Federal Reserve master account and is preparing for a possible public listing after filing a confidential draft registration statement with regulators. It recently raised $200 million from Deutsche Börse Group, adding support from a traditional financial infrastructure provider.