MoneyGram launches USD stablecoin MGUSD on Stellar in US

MoneyGram, a global payments company with over 60 million customers, has launched a U.S. dollar-backed stablecoin called MGUSD on the Stellar blockchain. The token became available in the United States on Tuesday, with plans for an international rollout in the coming months. The stablecoin will be embedded into the MoneyGram app, allowing users to hold dollar-denominated balances in a self-custodial digital wallet and transfer funds through the company's global network.

The launch positions MoneyGram among a growing list of payment companies and banks utilizing stablecoins. These digital currencies, whose value is pegged to assets like the U.S. dollar, are seen as offering faster, cheaper, and around-the-clock settlements compared to traditional banking rails, a feature that has made them increasingly popular for cross-border remittances.

MoneyGram’s product involves several technology partners. The stablecoin is issued by Bridge, a Stripe-owned company, using smart contract infrastructure from M0 and wallet custody and distribution from Fireblocks. The company described MGUSD as a core piece of infrastructure for its network, intended to support future financial applications.