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MoneyGram has launched MGUSD, a US dollar-denominated stablecoin, marking a significant step in the company's broader strategy to build financial services infrastructure on blockchain rails for cross-border money movement and underserved populations.
The stablecoin has been developed through a series of partnerships. Bridge, a Stripe company, serves as the regulated issuer and is positioned as compliant with the GENIUS Act. The token is minted and burned using M0's smart contract infrastructure and deployed on the Stellar blockchain at launch. MoneyGram holds MGUSD in Fireblocks wallets, which are used to transfer funds to individual customer wallets embedded within the MoneyGram app. MGUSD launched today in the US market, with a global rollout planned.
The product is being integrated into the MoneyGram app as a self-custodial wallet, giving customers a stable, dollar-denominated balance accessible around the clock. The company is positioning MGUSD not as a product aimed at existing cryptocurrency users, but at the broader population of consumers who send money across borders or lack access to conventional financial services in markets affected by inflation or currency instability.
Anthony Soohoo, Chairman and CEO, MoneyGram
Anthony Soohoo, Chairman and CEO, MoneyGram said:
"The stablecoin market has largely focused on the asset itself. 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 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."
MoneyGram serves over 60 million active customers and operates one of the world's largest global payments networks, reaching nearly 500,000 retail locations. The company says more than 70% of its transactions are now digital. The MGUSD launch builds on a long-standing partnership between MoneyGram and the Stellar Development Foundation, which stretches back five years and has previously brought stablecoin-powered money movement to market.
Denelle Dixon, CEO and Executive Director, Stellar Development Foundation
Denelle Dixon, CEO and Executive Director, Stellar Development Foundation commented:
"Stellar was built for real-world utility at institutional scale. Our five-year partnership with MoneyGram is proof that stablecoins have moved well beyond pilots. Together, we've expanded financial access to millions of families and communities who need it most. MGUSD is the next milestone that demonstrates what purpose-built blockchain can deliver when paired with a trusted payments network."
Luke Tuttle, Chief Product and Technology Officer, MoneyGram
Luke Tuttle, Chief Product and Technology Officer, MoneyGram said:
The technical architecture underpinning MGUSD involved a significant rebuild of MoneyGram's core infrastructure to accommodate stablecoin-based settlement.
"Over the past year, we rebuilt the core of MoneyGram so that a digital dollar could move through it as naturally as cash moves through our agent network. That meant re-architecting issuance, orchestration and settlement. MGUSD enables MoneyGram's monetary layer to run on stablecoin rails by design. Everything our customers experience, such as faster transfers and the ability to hold digital U.S. dollars globally is the surface of that work. Everything else is invisible by design."
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