MoneyGram has launched a new mobile app that integrates U.S. dollar-pegged stablecoins and blockchain settlement rails, aiming to revolutionize cross-border payments with crypto technology.

The app enables users to receive money instantly into a US dollar balance backed by Circle's USDC stablecoin, which can be stored, spent, or cashed out through MoneyGram's extensive global retail network.

Powered by Circle’s USDC stablecoin, the Stellar blockchain, and Crossmint's payment infrastructure, the app facilitates fast, low-cost blockchain transactions.

Initially launched in Colombia, chosen for its high dependence on inbound remittances and economic challenges, the service leverages over 6,000 local retail outlets and aims to expand to other remittance-heavy markets.

Colombia's selection was strategic due to its status as an inbound remittance hub, receiving significantly more funds than it sends abroad, and its recent 40% peso devaluation over four years.

Looking ahead, MoneyGram plans to expand this service to additional markets, especially in regions with volatile currencies, to provide a hedge and more efficient payment channels.

The company emphasizes its longstanding international presence and strong brand recognition, particularly in the U.S. and U.K., as a foundation for this innovative move.

Recent U.S. legislation, notably the GENIUS Act, offers clearer regulatory guidance for stablecoins, boosting MoneyGram's confidence to expand these services globally.

This initiative exemplifies MoneyGram’s strategic effort to modernize remittance services through blockchain and stablecoins amidst a dynamic regulatory landscape.

Built on the Stellar blockchain and supported by Crossmint, this service marks MoneyGram’s most significant step toward integrating stablecoins into its customer offerings.

The broader crypto ecosystem includes proposals like Curve Finance’s $60 million stablecoin yield protocol, highlighting ongoing innovation and regulatory scrutiny in the space.

With nearly 500,000 locations worldwide and over 20,000 remittance corridors, MoneyGram is a major cash and crypto on/off ramp provider, positioning itself at the forefront of financial innovation.

CEO Anthony Soohoo describes stablecoins as a 'killer app' for crypto, emphasizing their potential to enable real-time settlement and stable value storage, akin to early technological breakthroughs.