MoneyGram has launched MGUSD, a U.S. dollar-backed stablecoin built on the Stellar blockchain, as the company accelerates its transition toward blockchain-powered payment services. The new digital asset will initially be available in the United States, with plans for broader international expansion later this year.
MGUSD Set to Power MoneyGram’s Payment Network
The company designed MGUSD to play a central role in its cross-border payment ecosystem. MoneyGram plans to integrate the stablecoin directly into its mobile app, giving users the ability to hold, send, and receive digital dollars through self-custodial wallets.
MGUSD is issued through Bridge, a stablecoin infrastructure provider owned by Stripe. Meanwhile, M0 supplies the smart-contract framework that supports token minting and redemption. The stablecoin operates natively on the Stellar network and relies on Fireblocks for custody and security services.
MoneyGram CEO Anthony Soohoo said the company aims to make MGUSD the primary transaction layer across its network of approximately 60 million active users.
Focus on Financial Access and Cross-Border Transfers
The launch targets consumers who face challenges such as inflation, currency instability, or limited access to banking services. By using MGUSD, users can store value in a dollar-pegged asset and convert funds into local currencies when needed.
Key benefits of the new stablecoin include:
- Faster international payments
- Lower settlement costs
- Access to digital dollars for underserved communities
- Seamless transfers through blockchain infrastructure
Furthermore, the initiative aligns with the growing use of stablecoins in remittances, settlements, and global commerce.
Long-Term Partnership With Stellar Continues
MoneyGram’s latest move builds on its partnership with Stellar, which began in 2021. Over the years, the collaboration has helped create one of the largest crypto cash-in and cash-out networks worldwide.
The network enables users to move between digital assets and physical cash across more than 200 countries and territories. Recent growth in Latin America has already introduced stablecoin-based account balances within the MoneyGram app using Stellar technology.
As the stablecoin market surpasses $300 billion in circulation, MGUSD highlights how traditional financial companies are increasingly adopting blockchain solutions to improve payment efficiency and global accessibility.
