MoneyGram, Stellar expand USDC remittances in Latin America

MoneyGram International expanded a multi-year partnership with the Stellar Development Foundation on April 22, unveiling plans to roll out USD Coin (USDC) remittance services across Latin America. The announcement was made at an industry event in Mexico City and adds El Salvador to earlier deployments in Colombia.

Under the agreement, MoneyGram will use USDC on the Stellar blockchain to settle cross-border transfers. Recipients can receive funds into a USD-denominated digital balance, keep those digital dollars, or convert them to cash through MoneyGram’s local payout network. The company will work with partners including Crossmint and Circle to enable near-instant settlement.

The expanded program builds on work that began in 2021 with Stellar, including a developer-facing API and cash on/off-ramps for digital assets. MoneyGram’s payments network covers more than 200 countries and territories.

Anthony Soohoo, MoneyGram’s chairman and chief executive, said at the event, “Everyone talks about financial inclusion. MoneyGram is delivering it. We are building an open payments network that moves seamlessly across fiat and stablecoin, enabling faster, lower-cost transactions, starting with the people who need it most.” Soohoo wrote on social media that Colombia was the first market and El Salvador is the latest, with additional markets planned this year.

Denelle Dixon, chief executive of the Stellar Development Foundation, stated the partners intend to expand access, lower costs and enable instant cross-border payments at scale. She said the work aims to make blockchain-based transfers simple for customers.

Circle’s USDC is the settlement token in the arrangement. The company expects the service to target users who rely on remittances and cash. Further geographic expansion across Central and South America is planned, though no specific market timelines were disclosed.