Today MoneyGram unveiled its stablecoin, MGUSD, just a month after Western Union launched one. While WU is taking it slowly, initially using it for settlement with agents in certain corridors, MoneyGram is targeting retail out of the gate, although initially in the United States.
Some of its clients live in jurisdictions with high inflation or limited financial services access, so MoneyGram says MGUSD will provide a “stable, dollar-denominated balance they can hold and access 24/7”. The firm has strong global reach with 60 million active customers and more than 70% of transactions being digital.
Luke Tuttle, Chief Product and Technology Officer at MoneyGram, said that the company spent the past year rearchitecting its infrastructure, including issuance, orchestration and settlement, so it can run on stablecoin rails. “Everything our customers experience, such as faster transfers and the ability to hold digital U.S. dollars globally, is the surface of that work. Everything else is invisible by design,” said Tuttle.
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