Key Takeaways:

• MoneyGram has launched MGUSD, a new digital dollar that users can hold and send through its mobile app.
• The stablecoin aims to make international money transfers faster and potentially cheaper for MoneyGram’s 60 million users.
• MoneyGram joins companies like PayPal, Visa, and Western Union in expanding the use of stablecoins for payments.

MoneyGram, one of the world’s largest money transfer companies, officially launched MGUSD, its own US dollar-backed stablecoin, on 2 June 2026. 

Built on the Stellar blockchain, MGUSD is now live in the United States and is integrated directly into the MoneyGram mobile app, where customers can hold, send, and convert digital dollars through a self-custodial crypto wallet. 

A global rollout is planned, though specific timelines have not been announced.

How the stablecoin is built and who’s behind it

Bridge, a company owned by payments giant Stripe, serves as the regulated issuer of the token under the GENIUS Act framework, a developing US regulatory structure for stablecoins. 

Blockchain infrastructure company M0 handles the smart contracts that control how new tokens are created and redeemed.

Fireblocks, a digital asset security company, provides the wallet infrastructure that helps securely distribute MGUSD to customers through the MoneyGram app (into their in-app wallets).

The stablecoin runs on Stellar, a blockchain network built specifically for fast, low-cost cross-border payments. MoneyGram’s relationship with the Stellar Development Foundation, the nonprofit behind the network, stretches back over five years. Earlier in the partnership, MoneyGram used Circle’s USDC (USDC) stablecoin on Stellar for international money transfers before launching its own digital dollar, MGUSD.

Learn More: What Are Stablecoins, and How Do They Work?

What this means for everyday MoneyGram users

MoneyGram currently serves over 60 million active customers through nearly 500,000 retail locations worldwide, with more than 70% of its transactions now processed digitally. For those customers, MGUSD introduces a new way to hold a digital dollar balance inside the MoneyGram app, send money internationally 24/7, and convert funds into local currency at any of the company’s agent locations, without going through a traditional bank.

The launch is particularly relevant in regions where people face high remittance costs, unstable local currencies, or limited access to banking services. According to World Bank data, sending $200 across borders costs an average of 6.36% in the third quarter of 2025, more than double the United Nations’ Sustainable Development Goal target of 3%.

Blockchain-based transfers have the potential to significantly reduce those costs, though users may still incur fees when converting between cash, bank accounts, and digital assets.

Related: Kraken and MoneyGram to Let Users Convert Crypto to Cash in 100+ Countries

MoneyGram joins a growing wave of payments firms issuing stablecoins

MoneyGram’s launch comes as interest in stablecoins continues to grow across the payments industry. Global banking giant Citi projected in a September 2025 report that the stablecoin market, currently valued at around $320 billion, could reach up to $4 trillion by 2030.

MoneyGram is not alone in pursuing this strategy. Its rival Western Union launched its own stablecoin, USDPT, on the Solana blockchain on 4 May 2026, initially in Bolivia and the Philippines, with an expansion to over 40 countries planned for 2026. 

PayPal and Visa have also integrated stablecoin infrastructure into their cross-border payment systems.

The company has also been expanding its crypto services in recent months. In May 2026, it enabled crypto-to-cash withdrawals for users of the Kraken cryptocurrency exchange and also joined the Tempo blockchain project, which focuses on cross-border payments and was incubated by Stripe and venture capital firm Paradigm.