Hassan Maishera
TL;DR
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MoneyGram has launched MGUSD, a U.S. dollar-backed stablecoin built on the Stellar blockchain and issued by Bridge, a Stripe subsidiary.
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Designed to support faster and more accessible cross-border payments, MGUSD will initially launch in the U.S. before expanding globally.
MoneyGram has unveiled MGUSD, its own U.S. dollar-backed stablecoin, marking a major step in the company's strategy to integrate digital assets into its global payments ecosystem serving more than 60 million active customers.
The stablecoin, announced on Tuesday, is designed to facilitate faster and more accessible cross-border payments while positioning MoneyGram at the forefront of the growing stablecoin economy.
MGUSD Built on Stellar Blockchain
MGUSD operates natively on the Stellar blockchain, leveraging a network optimized for payments and remittances.
Under the arrangement, Bridge, a subsidiary of Stripe, acts as the regulated issuer of the stablecoin under the GENIUS Act framework. Meanwhile, M0 provides the smart contract infrastructure responsible for the minting and burning of MGUSD tokens.
Digital asset infrastructure provider Fireblocks manages custody services, with MoneyGram initially holding MGUSD in Fireblocks wallets before distributing funds to customer wallets integrated directly into the MoneyGram app.
The stablecoin is launching first in the United States, with plans for broader international expansion in the future.
MoneyGram Targets Financial Inclusion Through Stablecoins
According to MoneyGram Chairman and CEO Anthony Soohoo, MGUSD was created to address real-world payment challenges faced by consumers globally.
"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," Soohoo said.
The launch reflects MoneyGram’s broader effort to bridge traditional financial services and blockchain-based payments, particularly in underserved markets where access to banking infrastructure remains limited.
The launch further strengthens MoneyGram's long-standing relationship with the Stellar Development Foundation, a partnership that has spanned more than five years.
During that period, MoneyGram utilized stablecoin-based payment infrastructure powered by USD Coin before advancing to the issuance of its own proprietary digital currency.
Stellar Development Foundation CEO Denelle Dixon described MGUSD as the next phase in demonstrating the capabilities of purpose-built blockchain payment systems when combined with a trusted global payments provider.
The MGUSD launch follows a series of strategic blockchain initiatives by MoneyGram.
In December, the company partnered with Fireblocks to support stablecoin settlement services. More recently, it became an anchor remittance validator on the Tempo blockchain, a project backed by Stripe and Paradigm.
MoneyGram also expanded its crypto services in May by enabling crypto-to-cash withdrawals for users of Kraken, further integrating digital assets into its global remittance network.
Competition Intensifies Among Payment Giants
MoneyGram’s move comes amid increasing competition among traditional payment providers seeking to establish proprietary stablecoin payment rails.
Western Union has announced plans for its USDPT stablecoin on the Solana network, while PayPal and Visa have continued expanding stablecoin-based settlement capabilities across their payment infrastructures.
