MoneyGram has announced the launch of its own US dollar-pegged stablecoin, MGUSD, which is now available on the Stellar blockchain. By integrating MGUSD with its app, the company aims to allow users to hold dollar-denominated balances in self-custodied wallets and transfer these balances across MoneyGram’s global payment network.
MGUSD debuts in the US with global rollout ahead
According to MoneyGram, the MGUSD stablecoin went live in the US on Tuesday, with plans for broader international expansion on the horizon. This move comes as competition intensifies among financial and payment companies adopting blockchain-powered solutions for cross-border transactions.
MoneyGram is recognized as a leading global payments provider, serving over 60 million customers and operating around 500,000 retail locations worldwide. The company has indicated its intention to make MGUSD a core component of its existing global payment infrastructure.
Anthony Soohoo, executive chairman and CEO at MoneyGram, emphasized that stablecoins are seen as a foundational building block for future applications on the company’s global network, highlighting that MGUSD was specifically designed with remitting families and users with limited access to financial services in mind.
Competition heats up in the stablecoin space
Stablecoins, which are digital assets tethered to fiat currencies such as the US dollar, are attracting growing interest among payment industry players. Advocates say these assets can provide cheaper, faster, and 24/7 settlement when compared to traditional banking systems. Citi forecasts that the stablecoin market could surge from its current $300 billion valuation to reach $4 trillion by 2030.
Recently, SoFi introduced its own stablecoin, SoFiUSD, while major firms like PayPal and Western Union have pursued partnerships with crypto infrastructure providers to offer similar services. MoneyGram has adopted a model that relies on external technology partners within this evolving arena.
Bridge, M0, and Fireblocks power MGUSD’s technology stack
For MGUSD, MoneyGram partnered with Bridge, a stablecoin infrastructure platform recently acquired by Stripe, with Bridge assuming the role of regulated issuer. The underlying smart contracts used for minting and redemption of MGUSD were developed by M0, while Fireblocks provides secure wallet infrastructure for custody and transfers.
Mini glossary: Self-custody refers to holding digital assets in a wallet that is fully controlled by the user, rather than an intermediary. In this approach, users are responsible for managing their private keys and safeguarding access to their funds.
This latest initiative continues the collaboration between MoneyGram and the Stellar Development Foundation, which has focused for the past five years on enabling stablecoin-powered money transfers. Denelle Dixon, CEO of the Stellar Development Foundation, stated that the Stellar network is built for enterprise-scale real-world use cases, and called MGUSD an example of purpose-driven blockchain infrastructure coupled with a trusted payment network.
The integration of MGUSD signals MoneyGram’s ambition to leverage blockchain to bolster its core offerings and cater to a global user base seeking efficient, cost-effective cross-border payment solutions.
Looking ahead, MoneyGram aims to extend MGUSD functionality beyond the US, positioning itself as a prominent player in the digital asset payments ecosystem.
Industry experts anticipate that the competitive landscape for stablecoins will continue to evolve, driven by the entry of traditional payment giants leveraging both proprietary and collaborative blockchain models.
By choosing a partnership-driven approach and building upon established blockchain networks like Stellar, MoneyGram seeks to streamline onboarding for users accustomed to traditional remittance channels while unlocking the speed and flexibility of digital assets.
With strategic partnerships and regulatory oversight, MoneyGram’s MGUSD could potentially redefine how consumers experience international money transfers, making digital dollars more accessible to millions worldwide.
