MoneyGram launched MGUSD, a U.S. dollar-backed stablecoin built on the Stellar blockchain, on Tuesday, June 2, 2026. The token goes live first for U.S. customers and is embedded directly into the MoneyGram app, where users can hold a dollar balance in a self-custodial wallet and move money across the company’s payments network. MoneyGram plans a broader international rollout to its 60 million customers and nearly 500,000 retail locations worldwide, putting one of the oldest names in remittances squarely into the digital-dollar race.
A stablecoin is a crypto token whose value is pegged to a fiat currency, in this case one MGUSD to one U.S. dollar, so it holds a steady price rather than swinging like Bitcoin. A self-custodial wallet means the customer, not MoneyGram, controls the funds and the keys.
Key takeaways
- MoneyGram launched MGUSD, a dollar-pegged stablecoin on Stellar, on June 2, 2026, starting with U.S. users.
- The token is issued by Bridge, the stablecoin firm Stripe acquired, which is positioned as a regulated, GENIUS Act-ready issuer.
- M0 built the mint-and-redeem smart contracts and Fireblocks supplies the wallet infrastructure.
- MoneyGram reaches 60 million customers and 500,000 retail locations, giving MGUSD a distribution footprint few crypto-native stablecoins can match.
Published: June 2, 2026, 16:00 UTC
Why MoneyGram is issuing its own dollar token
Stablecoins have become one of crypto’s fastest-growing sectors, and cross-border payments are the clearest use case. Tokens pegged to the dollar settle in seconds, run around the clock, and skip much of the correspondent-banking chain that makes remittances slow and expensive. That is the exact business MoneyGram has run for decades, which is why the company is now building on blockchain rails rather than defending against them.
The launch deepens a five-year partnership between MoneyGram and the Stellar Development Foundation that has focused on stablecoin-powered remittances. Issuing its own branded token moves MoneyGram from distributing other firms’ dollars to controlling the asset that flows through its network. “MGUSD is the stablecoin we built for our customers, for the families sending money home and for the billions of people around the world with limited financial access,” said MoneyGram chairman and CEO Anthony Soohoo in a statement.
The market backdrop is large. Citi has projected the stablecoin market could reach $4 trillion by 2030, up from roughly $300 billion today.
How MGUSD fits the broader payments shift
MoneyGram is the latest legacy payments brand to commit to a dollar token, and it is taking the partnership route rather than building issuance from scratch. SoFi rolled out its own SoFiUSD stablecoin to 15 million users in late May, while PayPal and Western Union have leaned on infrastructure providers such as Paxos and Anchorage Digital to bring stablecoin services to customers.
The competitive pressure is real for traders, developers, and remittance users alike. A stablecoin embedded in an app that 60 million people already use lowers the on-ramp barrier that has kept most crypto products niche. For developers, Stellar gains another high-volume issuer; the network has also been moving into institutional settlement, including a recent DTCC tokenization deal. The open question is whether MoneyGram’s customers, many of them sending money to underserved regions, will adopt a self-custodial wallet or treat MGUSD as a behind-the-scenes settlement layer they never directly touch.
The regulatory and infrastructure stack
MGUSD is issued by Bridge, the stablecoin infrastructure company Stripe acquired, which serves as the regulated issuer of record and is positioned for compliance under the federal GENIUS Act framework for stablecoins. That structure matters: the issuer, not MoneyGram, carries the reserve and compliance obligations, letting the payments firm focus on distribution.
The technical stack splits cleanly. M0 developed the smart contracts that mint and redeem MGUSD, and Fireblocks provides the wallet infrastructure that holds customer balances. Stellar Development Foundation CEO Denelle Dixon framed the launch as proof of the network’s institutional readiness, saying MGUSD shows “what purpose-built blockchain can deliver when paired with a trusted payments network.” The next milestone to watch is the international rollout, which will test whether MGUSD can clear regulatory hurdles in the remittance corridors where MoneyGram makes most of its money.
Frequently asked questions
What is MGUSD?
MGUSD is MoneyGram’s U.S. dollar-backed stablecoin, launched June 2, 2026 on the Stellar blockchain. Each token is pegged to one U.S. dollar and is held in a self-custodial wallet inside the MoneyGram app for payments and transfers.
Who issues and supports MGUSD?
Bridge, the stablecoin firm owned by Stripe, is the regulated issuer. M0 built the smart contracts that mint and redeem the token, and Fireblocks supplies the wallet infrastructure. The token runs on Stellar at launch.
Where can people use MGUSD?
MGUSD is available first to U.S. users through the MoneyGram app. The company plans an international rollout across its network of 60 million customers and nearly 500,000 retail locations, with a focus on cross-border remittances.
