MoneyGram launches its MGUSD stablecoin on Stellar, aiming to transform global payments with faster, lower-cost digital dollar transfers.
MoneyGram has officially entered the stablecoin market with the launch of its own U.S. dollar-backed digital asset, marking a major step in the growing competition among payment companies looking to reshape global money transfers.
The company announced the launch of MGUSD, a new stablecoin built on the Stellar blockchain, as demand for blockchain-powered payment solutions continues to accelerate worldwide.
The move places MoneyGram alongside a growing list of banks, fintech firms, and payment providers that are embracing stablecoins as the future of cross-border transactions.
MGUSD is a U.S. dollar-backed stablecoin designed to maintain a one-to-one value with the dollar.
Unlike traditional cryptocurrencies that can experience large price swings, stablecoins are intended to provide price stability while benefiting from the speed and efficiency of blockchain technology.
MoneyGram said the new token will be integrated directly into its mobile application, allowing users to hold digital dollars in self-custody wallets and transfer funds through the company's international payment network.
The rollout begins with U.S. customers before expanding to additional markets across MoneyGram's global footprint. The company currently serves more than 60 million customers and operates through nearly 500,000 retail locations worldwide.
Stablecoins have quickly become one of the fastest-growing sectors in the digital asset industry.
Many financial companies believe blockchain-based dollars can solve long-standing problems in international payments, including slow settlement times, high transaction fees, and limited banking access.
Traditional cross-border transfers often require multiple intermediaries and can take several days to settle. Stablecoins, on the other hand, can move value almost instantly while operating 24 hours a day. This growing efficiency has attracted attention from major financial institutions.
Recent months have seen companies such as PayPal, SoFi, and Western Union expand their stablecoin initiatives as competition intensifies. According to estimates from banking giant Citi, the global stablecoin market could grow from roughly $300 billion today to as much as $4 trillion by 2030.
MoneyGram selected the Stellar blockchain as the foundation for MGUSD. The partnership is not new. MoneyGram and the Stellar Development Foundation have spent several years working together on blockchain-powered remittance services.
The latest launch represents a significant expansion of that relationship. Stellar Development Foundation CEO Denelle Dixon described MGUSD as another example of how blockchain technology can be used for real-world financial applications.
According to Dixon, Stellar was designed specifically to support large-scale financial operations and international payment systems.
The network has built a reputation for low transaction costs, fast settlement speeds, and accessibility, making it attractive for payment-focused use cases.
MoneyGram is not building the infrastructure alone. The company partnered with Bridge, the stablecoin infrastructure platform acquired by Stripe, which serves as the regulated issuer of MGUSD.
Several additional technology providers are supporting the project:
This combination allows MoneyGram to focus on distribution and customer access while relying on specialized blockchain firms for the underlying technology.
MoneyGram executives suggest MGUSD is only the beginning.
Chairman and CEO Anthony Soohoo said the stablecoin will serve as foundational infrastructure for future financial products built across the company's global network.
He noted that the company wants to create services that benefit families sending money internationally and individuals who have limited access to traditional banking systems.
That vision aligns with one of crypto's original goals: expanding financial access through digital technology.
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