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MoneyGram Launches MGUSD Stablecoin on Stellar for Cross-Border Transfers

MoneyGram Launches MGUSD Stablecoin on Stellar for Cross-Border Transfers

According to MoneyGram, MGUSD gives U.S. customers a digital dollar balance inside its app and is designed to connect blockchain transfers with the company’s global cash network.

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Fact Check
MoneyGram's official PR Newswire press release titled 'MoneyGram Launches MGUSD, a Stablecoin to Power Its Own Global Network' directly confirms the launch with native issuance on Stellar. CoinDesk and Cointelegraph independently corroborate the launch on the same day, with CoinDesk noting access for MoneyGram's 60 million customers.
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Summary

MoneyGram has launched MGUSD, a U.S. dollar-pegged stablecoin on the Stellar blockchain, initially making the digital dollar available to U.S. customers through its app with plans to expand to its global base of 60 million users. The token provides customers with a wallet balance inside the existing MoneyGram app and can be used to hold and transfer U.S. dollars across the company’s network of 500,000 retail locations worldwide. According to the announcement, Bridge is the issuer of MGUSD, M0 wrote the smart contracts for minting, and Fireblocks provides the wallet layer. MoneyGram CEO Anthony Soohoo said the company is using stablecoin as a foundation for future applications on its global network, while Stellar Development Foundation CEO Denelle Dixon described the launch as another milestone in combining blockchain infrastructure with a trusted payments network.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value, usually by being pegged to a fiat currency such as the U.S. dollar.
  • Stellar: A blockchain network focused on payments and asset transfers, commonly used for fast, low-cost cross-border transactions.
  • MGUSD: MoneyGram’s U.S. dollar-pegged stablecoin built on Stellar for use within its app and payments network.