MoneyGram launches MGUSD, a US dollar stablecoin on Stellar, to power its cross-border remittance network and allow users to hold dollar balances, move funds globally, and convert to local currencies via a self-custodial wallet in the MoneyGram app.

Bridge, a Stripe company, serves as the regulated issuer under the GENIUS Act framework, with M0 providing institutional-grade smart contracts to ensure transparent reserves.

MGUSD is positioned as core infrastructure across MoneyGram’s network, which serves over 60 million customers and nearly 500,000 retail locations worldwide.

The initiative aims to reduce reliance on traditional correspondent banking, cut intermediary fees, and accelerate settlement times for cross-border remittances.

The story references external sources and notes ongoing industry shifts toward using stablecoins for cross-border payments.

The solution targets institutional liquidity providers, emphasizing compliance, efficiency, and security for cross-border settlement.

Market context shows stablecoins expanding, with a multi-hundred-billion market and projections toward trillions by 2030, underpinning remittance firms’ interest in blockchain settlements.

Stablecoins are increasingly used by banks, fintechs, and payment providers to offer cheaper, faster, 24/7 settlements, with projections of substantial growth by 2030.

CFOs remain cautious about crypto and stablecoins due to regulatory and liquidity risk, even as a practical path emerges.

MGUSD fits a broader trend of stablecoins gaining traction for cross-border payments, with other firms exploring similar rails.

The move reflects using stablecoins as a foundation for broader applications within MoneyGram’s global network, per CEO Anthony Soohoo.

Analysts expect MGUSD and similar native token integrations to spur further tokenization projects among traditional fintech and remittance players.