[DigitalToday reporter Jinju Hong] Crypto exchange Kraken is launching a service with global remittance company MoneyGram that lets users withdraw cryptocurrency as cash. It is linking digital assets that had stayed within exchanges to the physical financial network, accelerating broader real-world use of cryptocurrency.

CryptoPolitan reported on Tuesday local time that under the partnership, Kraken users will be able to use MoneyGram’s global offline network to convert cryptocurrency into local currency and withdraw cash.

The service will start in the United States and then expand to parts of Europe, Latin America, Africa and Asia-Pacific. It will operate in more than 100 countries and support hundreds of local currencies. MoneyGram operates nearly 500,000 offline locations in about 200 countries and regions worldwide.

The roles of the two companies are separated. Kraken will handle customer acquisition and know-your-customer checks, while MoneyGram will provide the actual cash payout service based on a regulated payments system. They also signaled an expansion of additional functions beyond simple withdrawals. The companies plan to add local bank deposits and traditional remittance functions to Kraken’s global remittance app, Krak, in the future.

The announcement comes as Kraken prepares for an initial public offering. Kraken executives said at the Consensus Miami 2026 event held recently in Miami that the company’s IPO readiness is at the level of being "80 percent ready."

The company submitted confidential listing documents to the U.S. Securities and Exchange Commission in November last year, but it has temporarily paused the timetable since March due to deteriorating market conditions. Co-CEO Arjun Sethi said at the event, "We are ready," and cited cost-cutting and improved automation as key achievements in IPO preparations.

Kraken has also been accelerating efforts to expand beyond its exchange business into a comprehensive financial platform. Its acquisitions over the past year of futures exchange NinjaTrader and derivatives platform Bitnomial are part of the same strategy. This is seen as an effort to reduce reliance on spot trading fees and increase the weight of derivatives and financial services.

In Washington, discussions over stablecoin regulation are also continuing. The Senate is pushing a bipartisan agreement to coordinate issues related to stablecoin rewards programs. The key question is whether crypto companies can offer stablecoin-holding customers rewards in the form of an annual yield.

Banks are pushing back, saying such services effectively function like deposits, while the crypto industry counters that traditional finance is trying to block competition. The industry says progress in the discussions could also speed up the handling of crypto regulatory legislation in the United States.

The market says Kraken’s partnership with MoneyGram and its IPO preparations show at the same time the trend of crypto companies moving into the mainstream and expanding real-world use.