MoneyGram Launches MGUSD Stablecoin to 60M Users via 500,000 Locations
PYPL•MoneyGram has launched MGUSD, a US dollar stablecoin integrated into its app serving over 60 million customers across nearly 500,000 retail locations with self-custodial wallets on the Stellar network. This roll-out increases competition for PayPal’s PYUSD by leveraging MoneyGram’s extensive remittance infrastructure in underbanked markets.
1. MGUSD Launch and Distribution
MoneyGram has officially deployed MGUSD, its native US dollar stablecoin, across its global network of nearly 500,000 retail locations and an app user base exceeding 60 million active customers. The stablecoin will allow users to hold and transfer dollar-denominated balances via self-custodial wallets built into the MoneyGram mobile application.
2. Technology and Custody Infrastructure
MGUSD is issued by Bridge under a regulated framework and secured by Fireblocks custody, with minting and burning managed on the Stellar blockchain. This setup aims to ensure fast, low-cost cross-border transfers and 24/7 access, especially in regions with currency instability and limited banking services.
3. Competitive Implications for PayPal
The rollout intensifies pressure on PayPal’s PYUSD, as MoneyGram leverages decades of remittance expertise and physical presence to reach underbanked populations. PayPal may need to enhance its own distribution channels and partnerships to maintain PYUSD adoption in overlapping corridors.
4. Regulatory and Market Context
By partnering with regulated issuers and using established custody solutions, MoneyGram seeks to navigate compliance requirements while expanding MGUSD globally. The move underscores a broader trend of traditional payment firms embedding stablecoins to improve efficiency and reach underserved customers.
