MoneyGram has launched its own U.S. dollar-backed stablecoin on the Stellar (CRYPTO: $XLM) blockchain.
Privately held MoneyGram joins a growing list of payment companies and banks that are moving into stablecoins, or digital dollars as they’re known.
The new stablecoin from MoneyGram is called “MGUSD” and is embedded into the MoneyGram app, allowing customers to hold a dollar-denominated balance in a self-custodial digital wallet.
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Users can transfer funds through the company’s global payments network. The product is now available in the U.S. with plans for a broader international rollout in coming months.
Stablecoins are cryptocurrencies whose value is pegged to another asset, typically the U.S. dollar.
Currently, stablecoins are one of crypto’s fastest-growing areas of digital finance, with growing interest from banks, fintech firms, and payment providers.
Advocates say stablecoins offer cheaper, faster and around-the-clock settlements compared to traditional banking, making them increasingly popular for remittances.
MoneyGram, with over 60 million customers and half a million retail locations worldwide, is hoping its stablecoin will meet the needs of existing customers and attract new ones.
“We’re using stablecoin as a foundation to build future applications on our global network,” said Anthony Soohoo, CEO of MoneyGram, in a written statement.
The company said the MGUSD (CRYPTO: $MGUSD) stablecoin is intended to serve as a core piece of infrastructure across its payments network.
The launch builds on MoneyGram’s relationship with the Stellar Development Foundation, a partnership that has focused on stablecoin-powered remittances for several years.
As a private company, MoneyGram’s stock does not trade on a public exchange.
