MoneyGram stablecoin MGUSD launched in the U.S. as the payments company moves deeper into blockchain-based remittances.
MoneyGram, the Dallas-headquartered payments firm best-known for providing cross-border money transfer services, announced on Tuesday the launch of its own U.S. dollar stablecoin named MGUSD that can be used on its payments network around the world.
The company said in a press release that the stablecoin will be integrated directly into the MoneyGram app through a self-custodial wallet, giving customers a dollar-denominated balance they can hold, send globally and convert into local currency.
The company has only launched the product in the U.S. and is planning to make it available globally at some point in time, though no specific date has been shared on this.
MGUSD is issued with support from Bridge, a Stripe-owned stablecoin infrastructure company. M0, a stablecoin infrastructure provider, will handle minting and burning through smart contracts, while Fireblocks, a crypto custody company, will provide wallet services.
The token is deployed on Stellar, a payments-focused blockchain that has worked with MoneyGram for several years, the press release reads.
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MoneyGram Stablecoin Targets Remittances
The launch puts MoneyGram into a different stablecoin lane than crypto exchanges and trading platforms. As MoneyGram Chairman and CEO Anthony Soohoo said, the stablecoin market “has largely focused on the asset itself,” which is why the company “is taking a fundamentally different approach.”
As MoneyGram argues, the target users aren’t crypto natives, but people who need lower costs and reliable dollar balances in markets with inflation and currency instability.
Data from DefiLlama shows Stellar has 12 stablecoins with a combined market cap of about $769 million. The biggest by far is USDY▼$1.13, Ondo’s yield-bearing dollar token, at about $526 million, followed by Circle’s USDC▲$0.9997 at about $231 million.
Read more: Stellar Price Soars 15% After Wall Street Firm Picks Blockchain
