MoneyGram launches native MGUSD stablecoin on Stellar for global remittances

Global payments giant MoneyGram has today officially launched the much-anticipated MGUSD, its native U.S. dollar stablecoin deployed on the Stellar network. The milestone marks a major institutional pivot toward blockchain-powered remittances, integrating digital asset rails directly into a legacy network that serves over 60 million active users globally.

The stablecoin is designed to act as a core monetary layer for cross-border payments. It specifically targets unbanked populations and families in emerging markets like Africa and parts of Asia who routinely navigate rampant inflation, limited traditional financial access, and intense fiat currency volatility.

Enterprise infrastructure

The deployment relies on a specialised Web3 consortium to manage compliance, issuance, and custody. Stripe-owned Bridge serves as the regulated issuance platform, while M0 provides the decentralised smart contract infrastructure responsible for minting and burning the stablecoin. Fireblocks completes the stack, managing institutional wallet custody to route tokens safely into the MoneyGram ecosystem.

The stablecoin launches initially for users in the United States, with a phased global rollout planned to tap into its network of nearly 500,000 global retail locations. It integrates directly into the MoneyGram app via an embedded self-custodial wallet, letting retail customers hold a 24/7 dollar-denominated balance or convert it seamlessly into local fiat cash.

MoneyGram’s MGUSD: Moving beyond speculation

The initiative highlights a major structural transition where legacy financial firms build proprietary rails instead of relying on third-party digital assets. MoneyGram previously spent more than five years executing cross-border settlement pilots utilising Circle’s USDC before graduating to its own native asset issuance.

According to Anthony Soohoo, chairman and CEO of MoneyGram, “The stablecoin market has largely focused on the asset itself. MoneyGram is taking a fundamentally different approach. Starting with our distribution platform, we’re using stablecoin as a foundation to build future applications on our global network. MGUSD is 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.”

Also read: PayPal expands PYUSD stablecoin to 70 markets, including Africa

This architectural shift is designed to make the underlying blockchain tech invisible to the end user. According to Luke Tuttle, MoneyGram’s chief product and technology officer, the firm spent the past year re-engineering its entire backend logic. 

“Over the past year, we rebuilt the core of MoneyGram so that a digital dollar could move through it as naturally as cash moves through our agent network,” Tuttle noted. “That meant re-architecting the issuance, orchestration, and settlement.” MGUSD is intended to enable MoneyGram’s monetary layer to run on stablecoin rails by design.

The decision to utilise Stellar leans on the blockchain’s historic optimisation for low-cost, high-speed asset transfers. According to DefiLlama data, Stellar currently hosts multiple stablecoins, including Ondo’s yield-bearing USDY and Circle’s USDC, but MGUSD is expected to aggressively shift network dynamics given MoneyGram’s built-in customer volume.

“Stellar was built for real-world utility at institutional scale,” said Denelle Dixon, CEO and executive director of the Stellar Development Foundation. “Our five-year partnership with MoneyGram is proof that stablecoins have moved well beyond pilots. Together, we’ve expanded financial access to millions of families and communities who need it most. MGUSD is the next milestone that demonstrates what purpose-built blockchain can deliver when paired with a trusted payments network.”

Also read: Western Union is rolling out Solana-based USDPT Stablecoin in May to bridge the crypto-to-cash divide

MoneyGram’s aggressive move comes amidst fierce competition among payment incumbents. Rivals like PayPal have scaled their own PYUSD token, while Western Union has explored similar digital asset pilots. By moving from testing open-market stablecoins to launching its own tightly orchestrated native asset, the company signals a new era where blockchain is no longer a speculative experiment, but the default foundation of global money movement.