MoneyGram has launched a US dollar stablecoin intended to support a wider range of financial services across its global payments network.
In a statement, the money transfer company said the stablecoin, called MGUSD, will act as “connective tissue” as MoneyGram expands its payments infrastructure using blockchain technology.
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MoneyGram introduced MGUSD in the US with plans to roll out the stablecoin to additional markets over time.
The company said MGUSD will be integrated into the MoneyGram app through a self-custodial wallet. The aim is to give customers access to a “stable, dollar-denominated balance”.
MoneyGram enabled the stablecoin through a group of partners.
Bridge, a Stripe company, is the regulated Genius Act-ready issuer. MGUSD is minted and burned using M0’s smart contract infrastructure. The token is deployed on the Stellar blockchain at launch.
MoneyGram holds MGUSD in Fireblocks wallets. These wallets are used to send tokens to customer wallets embedded in the MoneyGram app.
MoneyGram chairman and CEO Anthony Soohoo said: “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.”
MoneyGram added the issuance of MGUSD extends its partnership with the Stellar Development Foundation and builds on earlier work related to stablecoin-based money movement.
Stellar Development Foundation CEO and executive director Denelle Dixon said: “Stellar was built for real-world utility at institutional scale. 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.”
MoneyGram operates a cross-border payments network spanning digital and retail channels. The company said it has more than 60 million active customers and a footprint of nearly 500,000 retail locations.
Last month, Western Union introduced a US dollar-denominated payment stablecoin called USDPT.
