MoneyGram has launched MGUSD, a US dollar-backed stablecoin on the Stellar blockchain, as the remittance giant expands its push into blockchain-powered cross-border payments.
Announced Tuesday, MGUSD will be integrated into the MoneyGram app through a self-custodial wallet, allowing users to hold digital dollars, send money globally and convert funds into local currencies. The stablecoin is initially available in the United States, with plans for a broader international rollout.
MGUSD is issued by Bridge, Stripe’s stablecoin platform, and uses mint-and-burn infrastructure from M0 and wallet technology from Fireblocks. The launch follows growing interest from payment companies in using stablecoins to improve the speed and cost of international money transfers.
The new stablecoin builds on MoneyGram’s long-standing partnership with the Stellar Development Foundation and marks a deeper move into digital asset infrastructure, beyond its existing blockchain settlement services.
Stablecoins Gain Ground in Remittances
MoneyGram’s launch comes as remittance providers increasingly explore blockchain networks to reduce the cost of cross-border payments.
According to World Bank data, sending $200 internationally cost an average of 6.36% in fees during the third quarter of 2025, more than double the United Nations’ target of 3%. Stablecoins can significantly lower settlement costs, although users may still face exchange-rate spreads and cash-out fees.
The stablecoin market has also grown rapidly. Data from DefiLlama shows the sector is worth roughly $320 billion, while Citi projects stablecoin issuance could reach nearly $2 trillion by 2030.
Growing adoption has encouraged payment firms to expand their blockchain strategies. Earlier this year, MoneyGram partnered with crypto exchange Kraken to enable crypto-to-cash transfers in more than 100 countries. The company also teamed up with blockchain network Tempo to support stablecoin settlement for remittances.
Meanwhile, rival Western Union has entered the market with its own dollar-backed stablecoin, USDPT, launched on Solana and initially rolled out in Bolivia and the Philippines.
As competition intensifies, stablecoins are becoming an increasingly important tool for global payment providers looking to make international transfers faster, cheaper and more accessible.
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