MoneyGram took a significant step toward blockchain-powered remittances with the launch of MGUSD, a US dollar stablecoin operating on the Stellar blockchain. Integrated into its app via a self-custodial wallet, MGUSD allows users to maintain dollar-denominated balances, transfer funds globally, and exchange them into local currencies seamlessly. The initial rollout targets the US market, with plans to expand internationally.
The stablecoin’s infrastructure combines several cutting-edge platforms. MGUSD is issued by Bridge, Stripe’s regulated stablecoin platform, which recently received conditional approval from the US Office of the Comptroller of the Currency to function as a federally chartered national trust bank. The token’s mint-and-burn functions are managed by smart contracts from M0, while Fireblocks supplies wallet infrastructure. These partnerships position MoneyGram at the forefront of stablecoin adoption within remittance services.
This launch marks a strategic shift for MoneyGram, moving beyond backend blockchain settlement partnerships toward offering digital dollar balances directly to consumers in the app. It builds on the company’s ongoing collaboration with the Stellar Development Foundation, emphasizing issuance, balance management, and enhanced network utility.
The drive to integrate stablecoins reflects persistent challenges in cross-border payments. According to the Bank for International Settlements (BIS), international transfers remain costlier, slower, and less transparent than domestic transactions. World Bank data highlights that sending $200 internationally costs around 6.36% on average, more than double the United Nations Sustainable Development Goal target of 3%. These fees include transfer costs, foreign-exchange margins, and payout charges, which stablecoins may help reduce on the blockchain settlement side.
Stellar’s blockchain features extremely low transaction fees—about $0.000002 per operation—making it an attractive choice for remittance applications. While users still face on-ramp and off-ramp costs plus currency conversion fees, stablecoins can significantly cut the part of fees linked to settlement and liquidity.
The stablecoin market has seen substantial growth, with a market capitalization around $320 billion as reported by DefiLlama. Financial institutions like Citi forecast the market could reach nearly $2 trillion by 2030, underscoring the increasing role stablecoins play in payments.
MoneyGram’s MGUSD rollout reflects this evolving landscape, where remittance companies seek to lower costs and improve transaction speed by leveraging blockchain-based digital currencies integrated directly into consumer platforms.