MoneyGram Launches Stellar-Based Dollar Stablecoin MGUSD

MoneyGram has entered the dollar-pegged stablecoin market, seeking to integrate its own token into its payments network as demand grows for cross-border remittances and digital dollar payments.

CoinDesk reported on June 2 that MoneyGram launched MGUSD, a US dollar-linked stablecoin built on the Stellar blockchain.

MGUSD will be added to the MoneyGram app. Users will be able to hold dollar-denominated balances in self-custody wallets and send funds through MoneyGram’s global payments network.

The service is launching first for US users, with plans to expand to customers globally. MoneyGram has more than 60 million customers and about 500,000 retail locations worldwide.

MGUSD will be issued by Bridge, a stablecoin infrastructure company acquired by Stripe. Blockchain infrastructure firm M0 developed the smart contracts used for token issuance and redemption, while Fireblocks provides wallet infrastructure.

The launch comes as global payments companies move into stablecoin-based remittance and payment services. Stablecoins are gaining traction in cross-border transfers because they can offer round-the-clock settlement more cheaply and quickly than traditional banking networks.

MoneyGram Chief Executive Officer Anthony Soohoo said the company is using stablecoins as a foundation for building future applications across its global network. He described MGUSD as a stablecoin designed for customers sending money to family members and for users worldwide with limited access to financial services.

The Stellar Development Foundation also highlighted the significance of the launch. Chief Executive Officer Denelle Dixon said Stellar was built for institutional-scale real-world use cases, adding that MGUSD is the next milestone in showing what a trusted payments network and a purpose-built blockchain can deliver together.