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- MoneyGram launches MGUSD stablecoin on Stellar to expand global payments.
- MGUSD enables digital dollar transfers through MoneyGram’s worldwide network.
- Stellar partnership supports MGUSD as MoneyGram advances blockchain services.
MoneyGram has unveiled MGUSD, a new U.S. dollar-backed stablecoin launched on the Stellar network as the company expands its blockchain-based payments infrastructure. The stablecoin will be a key part of MoneyGram’s digital payments strategy and will be utilized in its payments services through the MoneyGram network in the future. The MoneyGram app will let users store a balance of their digital dollars, move money between countries and countries, and change assets to local currency, as required.
The first implementation of MGUSD is happening in the United States, as part of the company’s mobile app that features a self-custodial wallet. Accordingly, customers will be able to access digital money, but they will feel like they’re in control of their money. The launch further enhances MoneyGram’s long association with the Stellar ecosystem, a key player in the company’s blockchain payment endeavors during the last number of years. Stellar is intended to facilitate low-cost and efficient value transfers across the globe and MoneyGram hopes to benefit from this network through deploying MGUSD.
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Stellar Network Forms Foundation of MGUSD Launch
According to MoneyGram, several partners are helping with the stablecoin’s infrastructure. MGUSD is regulated by Bridge, a Stripe company. On the other hand, M0 offers the smart contract technology which is used to mint/circulate and burn the tokens. On top of that, Fireblocks provides wallet infrastructure that secures and controls the stablecoin prior to it being sent to customer wallets. These partners all develop the framework for the new digital currency.
While MoneyGram has been developing stablecoin services on its payment infrastructure, it isn’t focused solely on the asset, Anthony Soohoo, Chairman and CEO, said in an interview.
We are putting the stablecoin market in a completely different perspective by taking a strategic approach to the asset starting from the distribution platform, as a foundation for new applications to be developed on our global network. We’ve developed MGUSD as a stablecoin for our customers for families that are sending money home, and for the billions of people around the world that have extremely limited access to finance,” Soohoo said.
Existing Reach Supports Global Expansion
With almost 500,000 retail outlets around the world, MoneyGram currently has over 60 million active customers. At the same time, over 70% of its business is done virtually. That scale allows MGUSD to tap into a proven customer base, in several regions.
Moreover, the company’s digital services and physical branches provide additional channels to its customers for accessing financial services that incorporate a blockchain. The stablecoin will help provide users the option of a dollar-based asset, particularly in regions where inflation rates are low, currencies are volatile or where banks are not readily available, MoneyGram said.
Partnership With Stellar Continues to Grow
The launch is the latest effort towards the partnership with the Stellar Development Foundation and MoneyGram. The two have been working together for five years to boost payment services using stablecoins. Denelle Dixon, CEO/Executive Director of the Stellar Development Foundation, commented that MGUSD is a great example of how blockchain technology delivers support for the financial world in the real world on a large scale and for increased financial access. Given that MGUSD is live on the Stellar network, MoneyGram is working on advancing its blockchain payments approach, and using stablecoins as a key element of its future global financial services network.
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