MoneyGram announced on Tuesday, June 2, 2026, the launch of MGUSD, a native U.S. dollar-backed stablecoin deployed on the Stellar blockchain. Anthony Soohoo, Chairman and CEO, MoneyGram, confirmed the digital asset is initially available to the company’s customers in the United States, with subsequent plans for a global scale-up. The token is issued by Bridge, a platform owned by Stripe, and aims to serve as the foundation for a new suite of financial services across MoneyGram’s extensive network.
The launch marks a significant transition for the remittance giant, which currently serves over 60 million active customers and maintains nearly 500,000 retail locations worldwide. By integrating MGUSD directly into the MoneyGram app through a self-custodial wallet, the company allows users to hold a stable, dollar-denominated balance. These funds can be moved globally 24/7 or converted into local currency at physical agent locations, addressing issues like inflation and limited financial access in underserved markets.
The decision to build on Stellar follows a partnership between MoneyGram and the Stellar Development Foundation (SDF) that has spanned more than five years. This infrastructure shift is occurring just as the crypto market window closes as utility shifts toward practical, institutional applications. MoneyGram is now leveraging blockchain to bypass the traditional costs and slow settlement times associated with standard correspondent banking rails.
Infrastructure partnerships power the MGUSD ecosystem
MoneyGram has assembled a stack of specialized technical partners to facilitate the minting and custody of the new stablecoin. Bridge, acquired by Stripe in February 2025, serves as the regulated, GENIUS Act-ready issuer. The smart contract infrastructure used for the minting and burning of MGUSD tokens is provided by M0, while Fireblocks handles the wallet layer and institutional-grade custody for the MoneyGram application.
Anthony Soohoo, Chairman and CEO, MoneyGram, differentiated the company’s strategy from typical digital asset launches. “The stablecoin market has largely focused on the asset itself. MoneyGram is taking a fundamentally different approach,” Soohoo stated. He explained that the company is using the stablecoin as a foundation to build future applications across its global network, specifically targeting families sending money home and those with restricted financial access.
Improving cross-border efficiency on the Stellar network
The Stellar network was selected for its ability to handle institution-scale use cases with minimal overhead. Transaction fees on the network are typically a fraction of a cent, making it an ideal choice for high-volume remittance. This focus on real-world application matches recent trends where XRP momentum restarts amid new liquidity surge and institutional interest in faster settlement across the board.
Denelle Dixon, CEO, Stellar Development Foundation, called MGUSD the “next milestone” for the blockchain, which already hosts 12 stablecoins with a combined market cap of approximately $769 million. According to DefiLlama data, the largest stablecoins on the network include USDY at $526 million and Circle’s USDC at $231 million. Dixon noted that the digital asset infrastructure of Stellar, paired with MoneyGram’s reach, provides a unique solution for bridging cash to crypto.
Competition in the digital dollar race
MoneyGram is now competing directly with other fintech and payment leaders like PayPal and SoFi, which have introduced their own stablecoins. However, MoneyGram’s strategy relies heavily on its physical footprint, allowing for a “cash-in, cash-out” capability that purely digital competitors cannot easily replicate. This is a critical factor for users in regions where physical currency remains the primary medium of exchange.
The regulatory environment has also influenced the design of these new assets. As the New Clarity Act blocks interest payments on stablecoins, the focus has shifted entirely to utility and movement rather than speculative yield. MoneyGram is positioning MGUSD as “connective tissue” for payments, ensuring that over 70% of its transactions, which are already digital, move more efficiently across borders.
Luke Tuttle, Chief Product and Technology Officer, MoneyGram, emphasized that the underlying complexity of the blockchain is “invisible by design” for the end consumer. The user experience focuses on faster transfers and the ability to hold digital U.S. dollars globally. MoneyGram and the SDF are now proving their five-year-old bet that stablecoins could fundamentally change how millions of people send and receive money.
MoneyGram’s move to power its own network with MGUSD represents a proactive shift in the global remittance industry. By controlling its own dollar-backed token, the company reduces reliance on third-party banking networks. This rollout will likely serve as a case study for how traditional financial institutions can modernize their aging infrastructure using purpose-built blockchain technology.