MoneyGram has officially launched MGUSD, a native dollar stablecoin built on the Stellar (XLM) blockchain to power global remittances, digital balances, and financial services for millions of underbanked customers worldwide. The stablecoin, dubbed MGUSD, will be embedded into the MoneyGram app, allowing customers to hold a dollar-denominated balance in a self-custodial wallet and transfer funds through the company's global payments network. According to reports from PRNewswire and The Block, the product debuted Tuesday in the U.S. market with plans for a broader international rollout across the firm's 60 million customers. As reported in the company's press release, the token is designed to give customers a dollar-denominated balance they can hold, send globally and convert into local currency, positioning MoneyGram in a different stablecoin lane than crypto exchanges and trading platforms. The launch represents the next chapter in MoneyGram's long-standing partnership with the Stellar Development Foundation, building on their five-year collaboration that has already brought stablecoin-powered money movement to market.
MoneyGram's stablecoin infrastructure includes partnerships with established blockchain and fintech companies. Bridge, the stablecoin infrastructure platform acquired by Stripe, serves as MGUSD's regulated issuer and is GENIUS Act-ready, while M0 developed the smart contracts used to mint and redeem the token. According to the latest announcement, Fireblocks provides wallet infrastructure where MoneyGram holds MGUSD tokens before sending them to individual customer wallets embedded in the MoneyGram app. The token is deployed on Stellar, a payments-focused blockchain that has worked with MoneyGram for several years. As reported by CoinDesk, the company is following the path of other major players like SoFi, which recently unveiled its in-house built stablecoin SoFiUSD, and companies such as PayPal and Western Union that have partnered with crypto infrastructure providers like Paxos and Anchorage Digital. MoneyGram has been methodically building toward this launch, having tapped Fireblocks for stablecoin settlements in December and being named an anchor remittance validator on the Stripe and Paradigm-backed Tempo blockchain last month.
According to Anthony Soohoo, chairman and CEO of MoneyGram, the company is using stablecoin as a foundation to build future applications on its global network. As reported by PRNewswire and The Block, MGUSD is intended to serve as a core piece of infrastructure across MoneyGram's payments network, which reaches more than 60 million customers and nearly 500,000 retail locations worldwide. The company has rebuilt its core infrastructure over the past year so that digital dollars can move through it as naturally as cash, re-architecting issuance, orchestration and settlement processes. As reported in the company's press release, MoneyGram Chairman and CEO Anthony Soohoo noted that the stablecoin market "has largely focused on the asset itself," which is why the company "is taking a fundamentally different approach." The launch builds on MoneyGram's relationship with the Stellar Development Foundation, a partnership that has focused on stablecoin-powered remittance services for the past five years. As reported by The Block, MoneyGram Chairman and CEO Anthony Soohoo emphasized that "MGUSD is the stablecoin we built for our customers, for the families sending money home and for the billions of people around the world with limited financial access."
The target user for MGUSD is clear - families sending money home and the billions of people facing inflation, currency instability, or limited access to traditional banking services. As reported by PRNewswire and The Block, the product gives those customers a dollar-denominated balance they can hold and access 24/7, allowing them to move funds globally and convert into local currency on demand, from anywhere and at any time, directly from their phones. Over 70% of MoneyGram's transactions are already digital, giving MGUSD a built-in distribution network from day one. The company frames this as the bridge between cash and digital rails, positioning MGUSD to bring stablecoin utility into the hands of mainstream global users at real scale. According to Stellar Development Foundation CEO Denelle Dixon, MGUSD represents the next milestone of their five-year collaboration that has already expanded financial access to millions of families across emerging markets. As reported by The Block, MoneyGram Chairman and CEO Anthony Soohoo emphasized that "MGUSD is the stablecoin we built for our customers, for the families sending money home and for the billions of people around the world with limited financial access."
Despite the stablecoin launch, MoneyGram faces significant regulatory uncertainty with the CLARITY Act approval still pending and Polymarket odds falling to 55%. Senator Cynthia Lummis has recently sparked optimism by stating that "We are closer to a functioning digital asset market structure than we have ever been. Now is not the time to flinch." The CLARITY Act, if approved, is more likely to serve as a catalyst for MoneyGram, which prioritizes cross-border payments over yield generation. However, the competitive landscape presents challenges, as the stablecoin marketcap has grown to $319.989 billion in just five years, with Tether's USDT and Circle's USDC dominating the market with the most supply and transactions. According to AMBCrypto, it remains unclear where MGUSD will stand in this extremely competitive stablecoin market, though MoneyGram's established network of over 60 million active users and nearly 500,000 retail locations provides a strong foundation for potential growth.
