USDMoneyGram Launches MGUSD Stablecoin on Stellar
New digital dollar targets cross-border payments and remittances
TL;DR
- MoneyGram launched MGUSD, a U.S. dollar-backed stablecoin on Stellar.
- The product starts in the United States before a planned global rollout.
- Bridge, M0 and Fireblocks support issuance, smart contracts and wallet infrastructure.
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MoneyGram launched MGUSD, a U.S. dollar-backed stablecoin on the Stellar blockchain, as the privately held payments company moves to add digital-dollar balances and transfers directly into its global payments network.
The launch was announced Tuesday, June 2, 2026. MGUSD is designed to give MoneyGram customers a dollar-denominated balance inside the MoneyGram app, allowing users to hold and transfer digital dollars through the company’s payments system.
MoneyGram is starting the MGUSD rollout in the United States before expanding the product globally. The company’s broader target is to eventually bring the stablecoin to more than 60 million active customers through a network that also includes nearly 500,000 retail locations worldwide.
MoneyGram Builds Stablecoin Into Its Payments App
MGUSD is being positioned as infrastructure inside MoneyGram’s payments network, not as a standalone crypto product. The stablecoin is embedded into the MoneyGram app, where users can hold a U.S. dollar balance in a self-custodial digital wallet and transfer funds through MoneyGram’s global payments network.
Anthony Soohoo, MoneyGram Chairman and CEO, said the company is “using stablecoin as a foundation” to build future applications on its global network. Soohoo also said MGUSD was built for MoneyGram customers, including families sending money home and people with limited financial access.
Bridge, described as a Stripe company and a regulated issuer under the GENIUS Act framework, is the issuer of MGUSD. Stripe acquired Bridge in February 2025, linking the product to Stripe’s stablecoin infrastructure strategy.
M0 provides the smart contract infrastructure for MGUSD, including the token’s minting and burning functions. Fireblocks provides custody and wallet infrastructure, with MoneyGram holding MGUSD in Fireblocks wallets before funds are distributed to customer wallets inside the MoneyGram app.
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Stellar Partnership Expands From USDC to MGUSD
MoneyGram’s use of Stellar extends an existing relationship with the Stellar Development Foundation. One source described the partnership as lasting more than five years, while another described it as almost five years.
During that partnership, MoneyGram previously used Circle’s USDC for stablecoin-powered money movement before launching its own native stablecoin. Stellar Development Foundation CEO Denelle Dixon called MGUSD the “next milestone” for showing what a purpose-built blockchain can deliver when paired with a trusted payments network.
MoneyGram’s recent blockchain activity has extended beyond MGUSD. The company tapped Fireblocks for stablecoin settlements in December, became an anchor remittance validator on the Stripe and Paradigm-backed Tempo blockchain in the month before the MGUSD launch, and expanded in May to support crypto-to-cash withdrawals for Kraken users.
The stablecoin launch puts MoneyGram alongside PayPal, SoFi, Western Union and Visa in the push to bring stablecoin services into payments infrastructure. SoFi recently unveiled SoFiUSD, PayPal works with Paxos, and Western Union works with Anchorage Digital.
Western Union has also announced USDPT, a U.S. dollar stablecoin on Solana. Visa is described as having embedded stablecoin infrastructure into its own cross-border settlement stack.
Stablecoins are described as digital dollars pegged to another asset, typically the U.S. dollar. Advocates cited in the uploaded material say stablecoins can offer cheaper, faster, around-the-clock settlements compared with traditional banking.
Citi projected that the stablecoin market could grow from roughly $300 billion today to $4 trillion by 2030. MoneyGram’s launch gives the company a direct product in that market while using its existing remittance app and physical retail footprint as distribution channels.
MoneyGram is privately held, and its stock does not trade on a public exchange.
FAQ
What is MGUSD?
MGUSD is MoneyGram’s U.S. dollar-backed stablecoin on Stellar.
Where is MGUSD launching first?
MGUSD is launching first in the United States.
Who issues MGUSD?
Bridge is the issuer of MGUSD.
What is Stellar’s role?
Stellar is the native blockchain network for MGUSD.
This article has been refined and enhanced by ChatGPT.
