MoneyGram has launched its own US dollar-backed stablecoin on the Stellar blockchain (CRYPTO: $XLM).
Privately held MoneyGram joins a growing list of payments companies and banks that are moving toward stablecoins, or digital dollars, as they are known.
MoneyGram’s new stablecoin is called “MGUSD” and is integrated into the MoneyGram app, allowing customers to maintain a dollar-denominated balance in a self-custodial digital wallet.
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Users can transfer funds across the company’s global payments network. The product is now available in the US and there are plans for a broader international launch in the coming months.
Stablecoins are cryptocurrencies whose value is pegged to another asset, typically the US dollar.
Currently, stablecoins are one of the fastest growing areas of digital finance in cryptocurrencies, with growing interest from banks, fintech companies and payment providers.
Proponents say stablecoins offer cheaper, faster and 24-hour settlements compared to traditional banking, making them increasingly popular for remittances.
MoneyGram, with more than 60 million customers and half a million retail locations worldwide, hopes its stablecoin will meet the needs of existing customers and attract new ones.
“We are using the stablecoin as a foundation to build future applications on our global network,” Anthony Soohoo, CEO of MoneyGram, said in a written statement.
The company said the MGUSD (CRYPTO: $MGUSD) stablecoin is intended to serve as a central piece of infrastructure across its entire 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 stock is not traded on a public exchange.