MoneyGram launches MGUSD stablecoin on Stellar

MoneyGram launched MGUSD, a U.S. dollar‑pegged stablecoin built on the Stellar blockchain, in the United States this week and plans to expand distribution internationally.

Bridge, a Stripe company, serves as the regulated issuer for MGUSD and is presented as compliant with the GENIUS Act framework. M0 provides the smart contract infrastructure that mints and burns MGUSD on Stellar, and Fireblocks handles custody and wallet routing for the token.

MGUSD is issued one-to-one with the U.S. dollar and integrated into the MoneyGram mobile app. Tokens are stored in Fireblocks custody wallets and routed to self-custodial wallets embedded in the app, giving customers a dollar balance they can access at any time.

Customers can move MGUSD across borders, convert the tokens into local currency on demand from their phones, and use the balances alongside existing cash and bank rails.

MoneyGram serves more than 60 million active customers and operates nearly 500,000 retail locations worldwide. The company reports that over 70% of its transactions are digital.

Anthony Soohoo, MoneyGram’s chief executive, described the stablecoin as part of a strategy to build financial services on the company’s network rather than focusing solely on the token.

The product targets customers who face inflation, local currency volatility or limited access to bank accounts by offering a dollar‑denominated balance that can be sent and converted across borders.

Denelle Dixon, chief executive of the Stellar Development Foundation, characterized the launch as a milestone in a multi-year collaboration with MoneyGram to expand financial access in emerging markets.

The company stated MGUSD will enable faster transfers and programmable balances across its retail and digital channels by pairing regulated issuance and custody with on-chain token controls and in-app self-custody.

Stablecoins are digital tokens pegged to fiat currencies to maintain stable value. MoneyGram stated that issuing MGUSD directly and embedding custody and wallet functionality into its app provides remittance customers a dollar-denominated option for digital transfers.