MoneyGram launches MGUSD stablecoin on Stellar for remittances
In brief
- MoneyGram launched MGUSD stablecoin on Stellar, integrated into app's self-custodial wallet
- Bridge, Stripe's platform, issues tokens with OCC conditional approval
- Move signals industry shift toward consumer-facing digital dollar balances
Stablecoin infrastructure and backing
MGUSD tokens are issued by Bridge, Stripe's stablecoin platform, which received conditional approval from the US Office of the Comptroller of the Currency to operate as a federally chartered national trust bank in February. The stablecoin's infrastructure includes mint-and-burn smart contracts from M0 and wallet infrastructure from Fireblocks.
MoneyGram builds MGUSD on its long-running partnership with the Stellar Development Foundation. The launch reflects a deeper shift in the remittance industry—away from backend settlement arrangements and toward app-based digital-dollar balances consumers can hold and spend directly.
The remittance market opportunity
Why does this matter? World Bank data showed that sending $200 across borders cost an average of 6.36% in the third quarter of 2025. Stablecoins reduce friction. The total stablecoin market cap is around $320 billion, and Citi forecast in September 2025 that stablecoin issuance could reach a base case of $1.9 trillion by 2030.
MoneyGram's recent moves underscore the company's blockchain strategy. On May 5, MoneyGram partnered with crypto exchange Kraken to allow users to convert crypto into cash for pickup across 100 countries. On May 20, the company partnered with Tempo, a Stripe-incubated blockchain, to support stablecoin settlement and help validate remittance transactions.
Competitors are moving fast. Western Union began rolling out its USD stablecoin called USDPT on Solana on May 5, initially in Bolivia and the Philippines, with plans to expand to over 40 countries in 2026.
