MoneyGram launches MGUSD Stablecoin for remittance network
MoneyGram has launched MGUSD, a US dollar stablecoin with Stellar, as the remittance company steps up its push into blockchain-based cross-border payments.
The company announced Tuesday that MGUSD will be integrated into the MoneyGram app through a self-trusted wallet, allowing users to maintain dollar-denominated accounts, move funds globally and convert to local currencies. Stable Coin was initially launched in the US market.
MGUSD is supported by a popular infrastructure stack. The tokens are issued by Bridge, Stripe's stablecoin platform, which in February received conditional approval from the US Office of the Comptroller of the Currency to operate as a federally chartered national trust bank.
MGUSD is powered by Bridge, Stripe's stablecoin platform, a modern contract infrastructure powered by Mint and Fireblocks wallet infrastructure from M0 and Fireblocks.
The launch marks a deeper step in the remittance industry's stablecoin push, from backend settlements and payment partnerships to app-based digital-dollar accounts for consumers.
MoneyGram said MGUSD will build on its long-standing partnership with the Stellar Development Foundation. The company described the stable coin as a deep move into supply, balanced infrastructure and extensive network infrastructure.
The cost of remittance is what drives us down the chain.
The startup's remittance companies are experimenting with blockchain infrastructure to make cross-border payments, a sector that is expensive and inefficient compared to domestic systems.
$200 shipping cost worldwide. Source: World Bank
In the year In its 2026 paper, the Bank for International Settlements (BIS) notes that despite new payment arrangements for cross-border payments, they are “more expensive, inaccessible, slower and less transparent than domestic payments”. Retail cross-border payments can also take several days, and transparency can be limited.
Related: Western Union teams up with Crossmint to support USDPT stablecoin on Solana
According to World Bank data, sending $200 cross-border costs an average of 6.36% in the third quarter of 2025, meaning fees and foreign exchange margins cost about $12.72 per $200 transfer. This is more than 3 percent of the United Nations Sustainable Development Goal.
Stablecoin transfers can reduce the blockchain settlement portion of payments to one penny, although users can still pay on-ramps, off-ramps, foreign currency spreads, and local payments. Stellar's developer documentation says the network's minimum payout is 100 Stroop, or 0.00001 XLM (roughly $0.000002).
Stablecoins have grown into a large market to attract attention from payment organizations. According to DefiLlama data, the total stablecoin market value is around $320 billion, and as of September 2025, CT forecasts that stablecoins could reach $1.9 trillion by 2030.
Stablecoin Market Value Source: Defillama
That cost gap and stablecoin growth help explain why transfer companies are experimenting with stablecoin infrastructure. On May 5, MoneyGram partnered with crypto exchange Kraken to enable users to exchange cash for pickup in 100 countries. On May 20, the company partnered with Stripe-incubated blockchain Tempo to support stablecoin settlement and help verify transactions.
Business rival Western Union also moved to a stable coin. On May 5, the company launched USDPT, a US dollar stablecoin in Solana, in Bolivia and the Philippines, with plans to expand to more than 40 countries by 2026.
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