MoneyGram Launches MGUSD Stablecoin on Stellar Blockchain for Global Payments

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• MoneyGram launched MGUSD, a U.S. dollar-backed stablecoin built on the Stellar blockchain.
• MGUSD will be integrated into the MoneyGram app, allowing customers to hold and transfer digital dollars through self-custodial wallets.
• Bridge, acquired by Stripe, serves as the regulated issuer, while M0 developed the token’s smart contract infrastructure.
• The launch expands MoneyGram’s five-year partnership with Stellar focused on stablecoin-powered remittances and cross-border payments.
• MGUSD is designed as core infrastructure for MoneyGram’s global payments network serving more than 60 million customers worldwide.

MoneyGram Expands Stablecoin Strategy With MGUSD Launch

MoneyGram announced on Tuesday the launch of MGUSD, a U.S. dollar-backed stablecoin issued on the Stellar blockchain, marking a significant expansion of the company’s blockchain-based payments strategy.

The new digital dollar will be embedded directly into the MoneyGram application, allowing customers to maintain dollar-denominated balances in self-custodial wallets and transfer funds across MoneyGram’s global payments network.

The launch comes as stablecoins continue to emerge as one of the fastest-growing segments of the digital asset industry. Financial institutions, payment providers, and fintech firms have increasingly explored stablecoin-based infrastructure as a way to improve cross-border transactions through faster settlement times, lower costs, and continuous availability compared with traditional banking systems.

MoneyGram’s entry into the stablecoin issuance market positions the company alongside a growing number of financial firms developing proprietary digital dollar products to support international payments and remittance services.

Anthony Soohoo, Chairman and CEO of MoneyGram, said:

“The stablecoin market has largely focused on the asset itself. MoneyGram is taking a fundamentally different approach. Starting with our distribution platform, we’re using stablecoin as a foundation to build future applications on our global network.”

According to the company, MGUSD is intended to become a foundational component of its payments infrastructure, which serves more than 60 million customers through nearly 500,000 retail locations worldwide.

From USDC Integration to Proprietary Stablecoin

MoneyGram has spent the past several years piloting stablecoins, primarily USDC on the Stellar blockchain, in key markets such as Colombia and El Salvador. The launch of MGUSD marks a major strategic shift: the company is now moving from using third-party stablecoins to issuing and controlling its own branded digital dollar.

This transition gives MoneyGram greater flexibility in product development, user experience design, and potential new revenue streams through reserve interest and network fees.

Broader Industry Trend: MoneyGram joins a growing list of traditional financial and payments companies (such as PayPal with PYUSD) that are issuing their own stablecoins to modernize cross-border payments infrastructure amid rising demand for faster, cheaper, and 24/7 global money movement.

Built on Existing Stellar Partnership and Payments Infrastructure

MGUSD represents the latest development in MoneyGram’s long-standing relationship with the Stellar Development Foundation. The two organizations have spent the past five years developing stablecoin-powered remittance services and blockchain-based money movement solutions.

The new stablecoin extends that collaboration beyond payment services into token issuance, digital balance management, and broader ecosystem utility.

“MGUSD is the next milestone that demonstrates what purpose-built blockchain can deliver when paired with a trusted payments network,” Denelle Dixon, CEO and Executive Director, Stellar Development Foundation.

The infrastructure supporting MGUSD involves multiple industry partners. Bridge, the stablecoin infrastructure platform acquired by Stripe, serves as the regulated issuer of the token. Blockchain infrastructure company M0 developed the smart contracts responsible for minting and redeeming MGUSD, while Fireblocks provides wallet infrastructure and custody technology.

Focus on Cross-Border Transfers and Digital Dollar Access

MoneyGram said MGUSD is designed to support a broader vision of an interoperable global payments network capable of moving digital dollars across borders as efficiently as traditional cash transactions.

The company stated that the stablecoin is intended to serve consumers sending remittances internationally, households operating in regions affected by currency volatility, and individuals seeking access to digital dollar-based financial tools.

According to MoneyGram Chief Product and Technology Officer Luke Tuttle, the company spent the past year rebuilding key components of its payments infrastructure to support stablecoin-based issuance, orchestration, and settlement processes. The launch reflects the continued integration of blockchain technology into mainstream payments systems as firms seek to modernize global money movement while leveraging stablecoins as a settlement layer.

Recently, Kraken expanded its real-world payments offerings through a partnership with MoneyGram, enabling users to convert crypto into cash and withdraw funds through MoneyGram’s global retail network. The collaboration reflects a broader industry push to connect digital assets with traditional financial services and cross-border payment infrastructure.

With MGUSD now live on Stellar, MoneyGram is expanding its role from facilitating stablecoin-powered transfers to operating its own branded digital dollar within its global payments ecosystem.