MoneyGram has announced the launch of its USD stablecoin, MGUSD, and its deployment on the Stellar blockchain. The product will initially launch in the US, with plans to expand internationally. As stablecoins gain traction in cross-border remittances, the payments company is incorporating a digital dollar into its network.
Launched in the US first
MGUSD will be integrated into the MoneyGram app. Users can hold USD-denominated balances in their self-custodied wallets and transfer funds through MoneyGram's global payment network. The company stated that it will gradually expand this service to a wider range of international users in the future.
- MoneyGram serves over 60 million customers.
- There are nearly 500,000 offline outlets worldwide.
- The first phase of the product is available to users in the United States.
Bridge is responsible for distribution.
MGUSD is issued by Bridge, Stripe's stablecoin infrastructure platform. MoneyGram chooses to partner with external infrastructure providers to advance the product rather than undertaking the issuance itself.
In terms of technical division of labor, M0 provides the smart contracts needed for token minting and redemption, while Fireblocks provides the wallet infrastructure. MoneyGram stated that MGUSD will be used as an infrastructure component in its payment network.
Continuing the collaboration with Stellar
This launch builds on a five-year partnership between MoneyGram and the Stellar Development Foundation, which has previously collaborated on stablecoin-driven remittance services.
MoneyGram CEO Anthony Soohoo stated that the company is developing subsequent applications based on stablecoins on its existing distribution network. Denelle Dixon, CEO of the Stellar Development Foundation, said that this product demonstrates the real-world payment uses of combining blockchain with a mature payment network.
At the industry level, competition in stablecoin payments continues to intensify. Recently, SoFi launched SoFiUSD, and PayPal and Western Union have also partnered with crypto infrastructure providers to bring stablecoin services to a wider user base.
