{"id":608639,"date":"2026-06-02T13:01:39","date_gmt":"2026-06-02T13:01:39","guid":{"rendered":"https:\/\/Blockchain.News\/news\/moneygram-launches-mgusd-stablecoin-stellar"},"modified":"2026-06-02T13:01:39","modified_gmt":"2026-06-02T13:01:39","slug":"moneygram-launches-mgusd-stablecoin-on-stellar-for-global-payments","status":"publish","type":"post","link":"https:\/\/e-bitco.in\/index.php\/2026\/06\/02\/moneygram-launches-mgusd-stablecoin-on-stellar-for-global-payments\/","title":{"rendered":"MoneyGram Launches MGUSD Stablecoin on Stellar for Global Payments"},"content":{"rendered":"
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Rongchai Wang<\/a> Jun 02, 2026 13:01<\/span> <\/p>\n

MoneyGram debuts MGUSD, a USD-pegged stablecoin on Stellar, aiming to cut remittance costs and enhance cross-border payment efficiency.<\/p>\n

\"MoneyGram <\/a> <\/figure>\n

MoneyGram has unveiled MGUSD, a U.S. dollar\u2013pegged stablecoin<\/a>, marking a significant step in its ambition to modernize cross-border payments through blockchain technology. Launched on June 2, 2026, MGUSD operates on the Stellar blockchain and is designed to integrate seamlessly into MoneyGram\u2019s mobile app. U.S. users can now hold dollar-denominated balances, transfer funds globally, and convert them into local currencies using a self-custodial wallet.<\/p>\n

The stablecoin\u2019s infrastructure is robust and heavily regulated. It is issued by Bridge, a Stripe-owned entity that received conditional approval from the U.S. Office of the Comptroller of the Currency to operate as a federally chartered trust bank. Smart contract infrastructure for minting and burning is provided by M0, while Fireblocks handles custody and wallet operations. Unlike algorithmic stablecoins, MGUSD\u2019s peg to the dollar is maintained through fiat reserves, ensuring stability and compliance.<\/p>\n

Addressing High Remittance Costs<\/h2>\n

The move comes as the remittance industry grapples with costly and inefficient cross-border payment systems. According to World Bank data, sending $200 internationally cost an average of 6.36% in Q3 2025, consuming $12.72 in fees\u2014more than double the UN\u2019s target of 3%. Blockchain-based stablecoins like MGUSD promise to drastically cut costs, with Stellar’s network fees as low as $0.000002 per operation.<\/p>\n

MoneyGram\u2019s stablecoin initiative aligns with broader trends in the industry, where competitors like Western Union are also rolling out blockchain solutions. Western Union recently launched its own USD stablecoin, USDPT, on Solana, with plans to expand to over 40 countries this year.<\/p>\n

Market Potential and Growth<\/h2>\n

Stablecoins are rapidly gaining prominence, with the total market capitalization hovering around $320 billion as of June 2026, per DefiLlama. Analysts at Citi project stablecoin issuance could reach $1.9 trillion by 2030, highlighting the sector\u2019s growth potential. While MGUSD is not yet publicly traded and lacks market capitalization data, its primary role within MoneyGram\u2019s ecosystem could set a precedent for other financial institutions exploring blockchain-based remittances.<\/p>\n

MoneyGram\u2019s decision to launch on Stellar underscores the blockchain\u2019s growing role in real-world financial applications. Stellar\u2019s infrastructure is geared for low-cost, high-speed transactions, making it a natural fit for remittances. The launch also builds on MoneyGram\u2019s long-standing partnership with the Stellar Development Foundation, showcasing a deepening commitment to blockchain integration.<\/p>\n

What\u2019s Next?<\/h2>\n

While MGUSD is currently available only in the U.S., MoneyGram plans to scale its stablecoin offering globally. However, the company has not yet disclosed specific timelines for international rollout. The focus remains on leveraging MGUSD to streamline cross-border payments and reduce costs for millions of remittance users worldwide.<\/p>\n

For now, MGUSD\u2019s success will depend on adoption rates, regulatory developments, and its ability to deliver on cost and efficiency promises. As the stablecoin ecosystem continues to evolve, MoneyGram\u2019s move could signal a turning point for blockchain\u2019s role in traditional finance.<\/p>\n

Image source: Shutterstock<\/i><\/span> Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Rongchai Wang Jun 02, 2026 13:01 MoneyGram debuts MGUSD, a USD-pegged stablecoin on Stellar, aiming to cut remittance costs and enhance cross-border payment efficiency. MoneyGram has unveiled MGUSD, a U.S. dollar\u2013pegged stablecoin, marking a significant step in its ambition to modernize cross-border payments through blockchain technology. Launched on June 2, 2026, MGUSD operates on the […]<\/p>\n","protected":false},"author":1,"featured_media":608640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[25452,506,25,5067,140,30],"class_list":{"0":"post-608639","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blockchain","8":"tag-mgusd","9":"tag-moneygram","10":"tag-news","11":"tag-remittances","12":"tag-stablecoin","13":"tag-stellar"},"_links":{"self":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/608639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/comments?post=608639"}],"version-history":[{"count":0,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/608639\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media\/608640"}],"wp:attachment":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media?parent=608639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/categories?post=608639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/tags?post=608639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}