MoneyGram, a US money transfer company, said on June 2 it launched MGUSD in the US on the Stellar blockchain.

The US dollar-backed stablecoin is available in the MoneyGram app, where users can hold a dollar balance in a self-custodial wallet and move funds through MoneyGram’s network. A broader international rollout is planned.

Bridge, a Stripe company, is MGUSD’s regulated issuer. M0 built the smart contracts, and Fireblocks provides wallet infrastructure.

MoneyGram said it holds MGUSD in Fireblocks wallets before sending tokens to customer wallets in the app.

Bridge said its US money transmission services run through Bridge Building Inc., which is listed under Nationwide Multistate Licensing System (NMLS)

The product extends MoneyGram’s existing Stellar partnership rather than marking a new blockchain strategy. Its MoneyGram Ramps service already lets digital wallets connect to cash-in and cash-out services using USDC in 170+ countries.

The launch also comes as US policy debate over whether approved nonbank issuers should operate with 1:1 reserves and disclosure rules.

It also follows PayPal’s move to let US users use PYUSD to fund transfers on Xoom, though recipients receive fiat currency rather than a stablecoin balance.

🔗 Source: CoinDesk

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