MoneyGram, a leading global payments company specializing in cross-border remittances, has begun offering MGUSD, its proprietary US dollar stablecoin built natively into its worldwide infrastructure.
The move gives the firm's 60mn active customers a dollar-backed digital balance they can hold, send and convert to cash at any of its retail locations globally. It shifts the traditional payments incumbent toward full control over stablecoin issuance for remittances.
Stablecoin rollout
MGUSD launches in the US market on 2 Jun, with global expansion planned. It operates on the Stellar blockchain – a decentralized network optimized for fast, low-cost cross-border payments – with Bridge, a regulated stablecoin infrastructure platform, and Stripe company serving as the issuer.
Tokens are minted and burned through MoneyGram's smart contract infrastructure, held in Fireblocks custody wallets – a leading digital asset custody provider – and accessible via a self-custodial wallet in the company's app.
"The stablecoin market has largely focused on the asset itself," said Anthony Soohoo, chair and CEO of MoneyGram. "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."
Years in the making
The launch builds on MoneyGram's long-term blockchain efforts. The company first partnered with the Stellar Development Foundation in 2021, enabling users to move between onchain holdings and local currencies. That same year, it collaborated with Coinme, a Bitcoin ATM operator, to allow cash purchases and sales of bitcoin (BTC) at more than 20,000 US locations.
In April, MoneyGram and Stellar announced a multi-year partnership extension. A stablecoin balance feature already operates in Colombia and El Salvador.
MGUSD functions primarily on the backend of the remittance process. This setup lets users maintain familiar experiences while gaining stablecoin benefits such as faster settlement and reduced volatility.
"Everything our customers experience, such as faster transfers and the ability to hold digital US dollars globally, is the surface of that work," said Luke Tuttle, chief product and technology officer at MoneyGram. "Everything else is invisible by design."
The development positions MoneyGram as both on-ramp and issuer. It moves the company away from reliance on partner-issued tokens such as Circle's USDC – a major US dollar stablecoin – towards its own instrument.
Remittance cost savings
The global remittance market moved approximately $905bn in 2024 and continues to expand. According to World Bank data from Q3 2025, the average international money transfer cost reached 6.4% – more than double the UN Sustainable Development Goal target of 3%. Banks charge the highest rates at around 15%, while digital providers average 3.7%.
Low-cost blockchain networks can bring fees below 1%. In the US–Mexico corridor, for example, crypto exchange Bitso processed $6.5bn in remittances in 2024, representing more than 10% of total volume, showing the demand for efficient alternatives.
More than 70% of MoneyGram's transactions are now digital. The company has not disclosed the specific impact of MGUSD on customer fees. Its current estimated cost for a $100 transfer from the US to Mexico stands at around 3%.
