DALLAS, May 7, 2026, 05:43 CDT
Kraken landed a global deal with MoneyGram, opening up a way for its users to swap crypto for cash using MoneyGram’s pickup locations—spanning more than 100 countries and offering the exchange a concrete cash-out option.
This deal’s got weight: crypto companies keep hunting for ways to make digital assets actually useful beyond just trading. All this, as banks and crypto players in the U.S. are locked in a Washington battle over stablecoin rewards—specifically, how much the CLARITY Act should let them offer. That bill aims to lay down clearer digital asset rules for the market.
Kraken users can soon cash out their crypto as fiat in hundreds of currencies, according to statements from the companies. The rollout happens in stages, reaching the U.S., Europe, Latin America, Africa, and select Asia Pacific markets. Kraken’s side covers onboarding and KYC; MoneyGram takes care of licensed money transfers through its regulated network.
The focus here is the “off-ramp”—crypto jargon for turning tokens back into cash. Kraken Co-CEO Arjun Sethi put it bluntly: digital assets “only matter at scale” if they connect to the financial rails people rely on. For MoneyGram CEO Anthony Soohoo, it’s all about reach. He pointed to the company’s retail footprint as a way for Kraken users to move from crypto to cash at scale. Kraken Blog
Sethi told Fortune some Kraken users in unstable currency regions treat the platform almost as a bank, keeping dollar-pegged balances and shifting funds as needed. “That off ramp is really important,” he said, pointing to the option to cash out. Fortune
MoneyGram keeps pushing its digital relaunch, moving further into crypto and stablecoin offerings as it looks to recover market share lost to fintech firms and online banks, Fortune noted. Stablecoins—digital tokens typically pegged to a currency like the dollar—are at the center of this latest push.
Rivalry in the sector is heating up. Western Union—MoneyGram’s chief competitor—announced this week it’s rolling out USDPT, a dollar-backed payment stablecoin on Solana. The company is also developing a digital asset network, with a consumer product targeting over 40 countries in 2026.
Banks have been moving as well. Last year, the U.S. Office of the Comptroller of the Currency clarified that national banks are allowed to take on certain crypto-related business—specifically custody and select stablecoin operations—without asking for the regulator’s blessing first, so long as they keep risk controls in place.
The fight isn’t over yet. Banking trade groups argued this week that the Senate’s latest stablecoin rewards proposal still “falls short” of preventing crypto firms from rolling out products that look a lot like interest-bearing deposits. Backers of the compromise, on the other hand, say it’s enough to keep the CLARITY Act alive and moving forward. Bankingdive
Kraken, eyeing a public debut, has moved a step closer. In November, Payward—the company behind Kraken—revealed it had quietly filed a draft registration statement for a possible U.S. IPO. Timing? Still up in the air, waiting on SEC review, market backdrop, and a few other pieces to fall into place.
If the rollout lags or underdelivers, there’s risk. Local rules, fees, available cash, and demand all influence cash pickup, and shifts in U.S. crypto laws may impact the economics. In April, Alex Thorn—Galaxy’s head of firmwide research—put the likelihood of the CLARITY Act passing by 2026 at “roughly 50-50,” noting unresolved questions and a crowded Senate schedule. Galaxy
The Kraken-MoneyGram partnership signals the direction of play: crypto platforms are eyeing bricks-and-mortar reach, while legacy payments players seek relevance in crypto traffic. The question is whether people actually see cash access as essential—or if it’s just headline fodder.
