MoneyGram Unveils MGUSD Stablecoin to Expand Blockchain-Based Remittance Services

Key Takeaways:

• MoneyGram launches MGUSD, a US dollar-backed stablecoin on the Stellar network.
• The stablecoin will allow users to hold digital dollar balances, transfer funds globally, and convert them into local currencies.
• The move reflects a growing trend among remittance firms to adopt blockchain and stablecoin technology to lower cross-border payment costs.

MoneyGram has launched MGUSD, a US dollar-pegged stablecoin on the Stellar blockchain. The launch of this new stablecoin signals a major step forward in modernizing cross-border payments through blockchain technology. Announced on Tuesday, the stablecoin will initially be available in the United States before expanding to international markets.

The MGUSD stablecoin is integrated into the MoneyGram app through a self-custodial wallet. This will enable users to store digital dollar balances, transfer funds globally, and convert them into local currencies.

Collaboration with Bridge by Stripe

The MSUSD is issued by Bridge, Stripe’s stablecoin platform, and is supported by a broader infrastructure network. The stablecoin uses mint-and-burn smart contract technology from M0 and wallet infrastructure provided by Fireblocks. MoneyGram said the project builds on its long-standing collaboration with Stellar, moving beyond payment settlement into stablecoin issuance and digital balance management.

Remittance Industry Embraces Stablecoin

The launch comes as remittance providers seek alternatives to traditional cross-border payment systems, which remain expensive and slow. According to World Bank data, sending $200 internationally costs an average of 6.36% in fees during the third quarter of 2025. This is significantly above the United Nations’ target of 3%.

Growing stablecoin adoption is accelerating this shift. The stablecoin market is valued at approximately $320 billion, with forecasts suggesting it could reach $1.9 trillion by 2030. MoneyGram’s move follows recent stablecoin initiatives by competitors, including Western Union’s rollout of its USDPT stablecoin and partnerships aimed at expanding blockchain-based payment solutions worldwide.