MoneyGram launches MGUSD stablecoin on Stellar

MoneyGram launched MGUSD, a native U.S. dollar stablecoin on the Stellar blockchain, the company announced. Bridge, a Stripe company, will act as the regulated issuer under the GENIUS Act framework. M0 will operate the smart contracts that handle minting and burning, and Fireblocks will provide custody. MoneyGram said it will hold MGUSD balances in Fireblocks wallets and transfer tokens to customer wallets embedded in the MoneyGram app when users transact. The company’s payments network serves more than 60 million customers.

MoneyGram framed MGUSD as a way to embed a digital dollar into its existing payment rails to support remittances and other cross-border flows. The token debuts in the U.S.; MoneyGram plans to scale it internationally but did not provide a timeline. The initial rollout will focus on families sending money home and people with limited access to traditional financial services.

Anthony Soohoo, MoneyGram chairman and CEO, described MGUSD as “the stablecoin we built for our customers, for the families sending money home and for the billions of people around the world with limited financial access.” He added that the product is intended to provide faster and more efficient settlement options across the network.

Denelle Dixon, chief executive of the Stellar Development Foundation, called MGUSD the “next milestone” in the collaboration between the organizations. MoneyGram and Stellar have worked together for more than five years; MoneyGram previously used Circle’s USDC for stablecoin-powered transfers before moving to its own issuance.

Operationally, M0’s smart contract infrastructure will manage minting and burning, while Fireblocks will hold custody of MGUSD prior to distribution to customers. MoneyGram previously engaged Fireblocks for stablecoin settlement infrastructure in December and was named an anchor remittance validator on the Tempo blockchain last month. In May, the company enabled crypto-to-cash withdrawals for Kraken users.

MoneyGram did not disclose details about the assets or reserves backing MGUSD. The U.S. launch is identified as the first phase and the company did not specify which international markets will follow or when they will open.

Other payments companies have developed proprietary dollar-pegged tokens and integrated stablecoin systems to speed cross-border settlement and lower settlement costs.