MoneyGram Launches MGUSD Stablecoin

MoneyGram on Tuesday announced the launch of MGUSD, a stablecoin integrated into its global payments network.

Issued on the Stellar blockchain, MGUSD is targeting the money transfer and payment services company’s 60 million customers, who access its services from more than 500,000 retail establishments worldwide.

The U.S. dollar-denominated stablecoin will be integrated directly into the MoneyGram app in a self-custodial wallet, giving recipients not just a way to receive remittances and other payments from abroad, but also a way to save and store dollars.

“In many markets, consumers face inflation, currency instability or limited access to reliable financial services,” the firm said in a statement. “MGUSD gives those customers a stable, dollar-denominated balance they can hold and access 24/7, as well as move globally and convert into local currency when they need it, on their own terms, at any time, from anywhere.”

MoneyGram said MGUSD will enable it to send funds far quicker — essentially instant access — and at lower costs than by traditional banking methods.

Lowering costs is one of the biggest promises stablecoins bring to the remittance market, where sending $200 can cost 6%, or $12, according to the World Bank. Visa said the global remittance market reached $905 billion in 2024, up 4.6%.

MoneyGram’s main competitor, Western Union, also launched a U.S. dollar stablecoin, USDPT, in May. Calling the launch “a major milestone in the company’s evolution toward regulated, digital‑first financial infrastructure,” Western Union said it plans to roll out USDPT payments to 40 of the more than 200 countries it serves in 2026, starting with Bolivia and the Philippines.

“The stablecoin market has largely focused on the asset itself,” said Anthony Soohoo, chairman and CEO of MoneyGram. “MoneyGram is taking a fundamentally different approach. Starting with our distribution platform, we’re using stablecoin as a foundation to build future applications on our global network.”

MGUSD represents an expansion of MoneyGram’s five-year partnership with the Stellar blockchain in moving money abroad via the USDC stablecoin. Stellar Development Foundation CEO and executive director Denelle Dixon called MGUSD, “the next milestone that demonstrates what purpose-built blockchain can deliver when paired with a trusted payments network.”

Stripe-owned Bridge, which received conditional approval to operate as a federally chartered national trust bank in February, is the regulated stablecoin issuer, using M0 smart contracts and wallet infrastructure provided by Fireblocks.