MoneyGram Debuts MGUSD Stablecoin to Power Digital Dollars Across Its Network

TLDR

• MGUSD launches on Stellar as a U.S. dollar stablecoin for MoneyGram users.
• Bridge, a Stripe company, serves as the issuer of MGUSD.
• MoneyGram plans to expand MGUSD beyond the U.S. market.
• Fireblocks provides wallet infrastructure for MGUSD transfers.
• MGUSD will be integrated into the MoneyGram app with self-custodial wallets.

MoneyGram has launched MGUSD, a native U.S. dollar-backed stablecoin designed to support financial services across its international payments network, with an initial rollout in the United States and plans to expand availability to customers in other markets.

The Dallas-based payments company said MGUSD will operate on the Stellar blockchain at launch and will become part of the MoneyGram app through a self-custodial wallet that allows users to hold a dollar-denominated balance.

The launch places MGUSD at the center of MoneyGram’s broader digital payments strategy as the company continues to connect traditional money transfer services with blockchain-based settlement tools. MoneyGram serves more than 60 million active customers through a network that includes nearly 500,000 retail locations and a growing digital platform.

MGUSD Built for MoneyGram Customers

MGUSD is intended for MoneyGram customers who send money across borders, manage funds in markets with currency instability, or need access to digital dollar balances outside traditional banking channels.

The company said the stablecoin is not being positioned primarily for crypto-native users, but rather as a payment and balance tool for households that already use MoneyGram for remittances, local currency conversion, and other financial services.

Through the MoneyGram app, users will be able to access MGUSD as a stable U.S. dollar balance that can be held, transferred, and converted into local currency when supported by the company’s network.

MoneyGram said the product is expected to support round-the-clock access to digital dollars, while also reducing friction for people who rely on cross-border payments.

Stellar Blockchain and Partner Infrastructure

The stablecoin is issued by Bridge, the stablecoin infrastructure company owned by Stripe, and MoneyGram described Bridge as a regulated, GENIUS Act-ready issuer. MGUSD uses smart contract infrastructure from M0 for token minting and burning, while Fireblocks provides wallet infrastructure used by MoneyGram to hold MGUSD and send tokens to customer wallets embedded in the MoneyGram app.

MGUSD is being deployed natively on the Stellar blockchain, extending a partnership between MoneyGram and the Stellar Development Foundation that has focused on stablecoin-supported money movement.

Stellar’s network is designed for payments, asset issuance, and low-cost settlement, features that MoneyGram is using as it builds blockchain-based services into its existing operations.

MoneyGram Chairman and CEO Anthony Soohoo said the company is using stablecoin technology as a foundation for applications across its distribution platform. He said MGUSD was built for families sending money home and for people with limited access to financial services, reflecting the company’s effort to combine stablecoin rails with an established money transfer network.

Expansion Planned Beyond the U.S. Market

MoneyGram said MGUSD launches in the U.S. market before a planned scale-up across its international customer base. The company did not provide a detailed timeline for availability outside the United States, but it described the product as a foundation for a broader set of financial services across its global network.

The company’s chief product and technology officer, Luke Tuttle, said MoneyGram rebuilt core parts of its infrastructure over the past year so a digital dollar could move through the network in a manner similar to cash movement through its agent locations.

He said the work involved issuance, orchestration, and settlement systems, with the customer experience centered on faster transfers and access to digital U.S. dollars within its network.

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