MoneyGram launches stablecoin on Stellar, joining rush toward digital dollar payments
MGUSD, issued by Stripe’s Bridge, will power services across MoneyGram’s global network as stablecoins gain traction in cross-border payments.
What to know:
- MoneyGram announced it launched its U.S. dollar-backed stablecoin MGUSD on the Stellar blockchain on Tuesday.
- The token will first be available for U.S. users with plans for global rollout across the firm’s 60 million customers as stablecoins increasingly compete in cross-border payments.
- MGUSD is issued by Stripe-owned Bridge, with smart contracts from M0 and wallet infrastructure from Fireblocks.
The product debuted Tuesday in the U.S. with plans for a broader international rollout, the firm said.
MoneyGram’s move comes as stablecoins have become one of crypto’s fastest-growing sectors, drawing interest from banks, fintech firms and payment providers looking to revamp cross-border payments using blockchain rails. These tokens, with prices tied to fiat currencies like the U.S. dollar, could offer cheaper, faster and around-the-clock settlements than traditional banking rails, making them increasingly popular for remittances. Their market size could reach $4 trillion by 2030 from the current $300 billion, global bank Citi projected.
SoFi recently unveiled its in-house build stablecoin SoFiUSD, while companies such as PayPal and Western Union partnered with crypto infrastructure providers like Paxos and Anchorage Digital to bring stablecoin services to customers.
