MoneyGram's Crypto App: Stablecoins Power Remittances
MoneyGram Embraces Stablecoins for Next-Gen App
MoneyGram has unveiled a redesigned mobile app leveraging U.S. dollar-pegged stablecoins and blockchain technology to streamline international money transfers. The company announced on Wednesday that stablecoins are now a core component of its digital infrastructure.
Colombia: The First Launch Market
The initial rollout will focus on Colombia, where MoneyGram boasts a network of over 6,000 locations. Colombian users will be able to receive and store payments in stablecoins, with plans for future expansion to other countries. MoneyGram CEO Anthony Soohoo emphasized Colombia's significance as a remittance corridor, noting that families receive 22 times more money than they send abroad. He also cited the Colombian peso's 40% devaluation over the last four years as a driving factor.
Stablecoins: A "Killer App" for Crypto?
Soohoo sees stablecoins as a pivotal innovation for the crypto space, comparing their potential impact to that of early technologies like spreadsheets, web browsers, and GPS-enabled mobile phones. He highlighted the advantages of real-time settlement and currency stability for MoneyGram users. The recent GENIUS Act in the U.S. also provides a regulatory framework for stablecoin operations, he noted.
Tech Behind the App
The new MoneyGram app utilizes Circle's USDC stablecoin and the Stellar blockchain for fast and low-cost transactions. Wallet infrastructure and stablecoin payments are supported by Crossmint.
MoneyGram's Global Footprint
MoneyGram operates a vast network of approximately half a million locations worldwide, providing cash pick-up and money transfer services across over 20,000 corridors. Soohoo also highlighted MoneyGram's position as a leading on and off-ramp for crypto. “When you talk about global payments there are a lot of companies that may have a presence and a strong brand in one market but when you leave the U.S., or the U.K., for example, no one knows about them,” Soohoo said. “We've been around for many years now and our brand is truly global.”