MoneyGram launched its own U.S. dollar stablecoin, MGUSD, as the payments giant deepens its push into blockchain-based global money movement.

Initial U.S. Launch

The stablecoin MGUSD will launch on the Stellar (CRYPTO: XLM) blockchain and will power a growing suite of digital financial services across MoneyGram's global payments infrastructure.

The initial launch will be in the U.S. market before it expands globally through the company's digital and retail payments network.

The stablecoin is backed by a group of major crypto infrastructure partners.

Bridge, a Stripe company, serves as issuer while M0 powers minting and burning infrastructure. Wallet custody infrastructure will be provided by Fireblocks and Stellar serves as the settlement blockchain.

MGUSD will integrate directly into the MoneyGram app through a self-custodial wallet, allowing users to hold dollar-denominated balances, send funds globally, convert into local currencies and access funds 24/7.

MGUSD For Those With Limited Financial Access

The launch marks one of the largest traditional remittance players building native stablecoin infrastructure directly into its payment rails.

The company said MGUSD is designed for consumers facing currency instability, inflation, limited banking access and expensive cross-border transfer costs.

MoneyGram CEO Anthony Soohoo said the company is using stablecoins as infrastructure rather than simply offering another crypto asset.

"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," Soohoo said.

The launch also strengthens Stellar's position in blockchain-based payments infrastructure and tokenized finance.

"Stablecoins have moved well beyond pilots," said Stellar Development Foundation CEO Denelle Dixon.

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