MoneyGram Launches MGUSD Stablecoin in App for 60M Users

MoneyGram launched MGUSD on June 2, introducing a self-custodial U.S. dollar stablecoin built natively on the Stellar blockchain and accessible inside the MoneyGram mobile app. The integration links about 60 million customers to digital dollar balances and connects nearly 500,000 retail agent locations to on-chain funds.

MGUSD is issued by Bridge, a Stripe company, with minting and burning handled through M0’s smart contract infrastructure. MoneyGram holds newly issued MGUSD in Fireblocks custody before routing tokens to customer wallets embedded in the app. Users can keep dollar-denominated balances, send funds globally 24/7 and convert to local currency at agent locations. The product debuts in the United States with a planned global rollout.

The stablecoin targets remittance customers and people with limited access to traditional banking. Anthony Soohoo, MoneyGram’s chairman and chief executive, said the company focused on distribution and that “MGUSD is the stablecoin we built for our customers, for the families sending money home and for the billions of people around the world with limited financial access.”

Luke Tuttle, MoneyGram’s chief product and technology officer, explained the company rebuilt core systems over the past year to support blockchain rails. He said MoneyGram re‑architected issuance, orchestration and settlement so a digital dollar can move “as naturally as cash moves through our agent network.” The integration ties cash, mobile and on‑chain balances into a single payments layer while preserving in‑app self custody for users.

The launch builds on more than five years of work with the Stellar Development Foundation, including earlier USDC cash-in and cash-out ramps at MoneyGram agent locations and wallet features in Colombia and El Salvador. Denelle Dixon, chief executive of the Stellar Development Foundation, described the partnership as proof that stablecoins have moved beyond pilots and called MGUSD “the next milestone” for real‑world blockchain utility paired with a payments network.

On the Stellar network, every MGUSD transaction requires XLM to pay network fees and to meet minimum account reserve requirements. Higher MGUSD usage will increase XLM circulation and the amount of XLM locked in reserves. Stellar’s built-in decentralized exchange can also use XLM as a bridge asset within payment paths.

MoneyGram extended its Stellar partnership in April 2026 to expand Latin America stablecoin features. The announcement comes amid broader institutional activity on Stellar and recent XLM price moves: the token rose more than 50% over some seven- and fourteen-day windows while remaining down on a one-year basis.

MoneyGram serves more than 60 million active customers across over 170 countries, with more than 70% of transactions processed digitally. The company says the integration allows customers to move between cash and digital dollars without leaving MoneyGram’s network.