MoneyGram Taps USDC and Stellar Lumens for Next-Gen Payments App

• MoneyGram launches Colombia app using USDC stablecoins for instant cross-border remittances with dollar stability.
• App built on Stellar with Crossmint support, future plans include global expansion into remittance-heavy markets.

MoneyGram announced the launch of a new mobile application in Colombia on Wednesday, introducing a service that allows users to receive instant transfers in a US dollar balance backed by Circle’s USDC stablecoin. The app is powered by Stellar blockchain and wallet provider Crossmint.

The company said the rollout addresses the challenges of currency depreciation, especially the Colombian peso, which has steadily lost value against the dollar over the past decade. Users can now hold, spend, or cash out their funds across MoneyGram’s global network of nearly 500,000 locations.

Anthony Soohoo, CEO of MoneyGram, highlighted the larger vision behind the project. He stated,

MoneyGram Brings Instant USD Access to Colombia

Colombia was selected to start due to its remittance-heavy economy. Families in the country receive 22 times more money from abroad than they send out. The app is designed to deliver more value to users in those markets that heavily depend on money coming from overseas.

The mobile service gives Colombian citizens instant access to US dollars through their smartphones without needing a bank account. It also protects them from changes in the local currency and allows them to withdraw cash from MoneyGram centers.

Luke Tuttle, Chief Product and Technology Officer, described the approach. 

MoneyGram said that it is planning to enter more markets, focusing on countries where reliance on remittances is strong. Additionally, future upgrades in Colombia will allow users to directly deposit cash into their US dollar balance at retail locations, link Visa or MasterCard debit cards for spending worldwide, and also get rewards on their savings.

GENIUS Act Creates Guardrails for Stablecoins

The announcement emphasized that compliance is a central part of the project. The company highlighted its long-standing regulatory experience while acknowledging that stablecoin regulations are still in the development phase. 

Earlier this year, the U.S. Congress passed the “GENIUS Act,” which established a framework for the oversight of stablecoins, and MoneyGram cited it as providing clearer guidance.

Since partnering with Stellar in 2021, MoneyGram has been experimenting with blockchain technology, which includes creating cash on- and off-ramps, integrating a crypto API, and incorporating stablecoins into its settlement process.

With more than five billion digital endpoints connected to its network, MoneyGram shows itself as a leader in joining the old financial system with blockchain-based services. The company said it is following a global plan to make cross-border money transfers faster, safer, and cheaper.