In a bold leap toward the future of digital finance, MoneyGram has announced a significant overhaul of its mobile app, making U.S. dollar-pegged stablecoins and blockchain settlements the core of its next-generation platform. This move signals a major shift in how the company aims to serve its global customer base, offering a blend of traditional and digital finance that promises to redefine remittances.
A New Frontier for MoneyGram
In a statement released on Wednesday, MoneyGram revealed that its updated app will first be rolled out in Colombia, a country where it boasts an extensive retail network with over 6,000 locations. Colombia is not just a strategic choice; it’s a necessity, according to MoneyGram CEO Anthony Soohoo. The nation serves as a major inbound remittance corridor where families receive significantly more money than they send abroad. Moreover, the Colombian peso has suffered a steep decline, losing over 40% of its value in the past four years. These factors make Colombia an ideal starting point for the app’s launch.
“Stablecoins really are the killer app for crypto, and I think we’re just at the dawn of all the possibilities,” Soohoo stated in a recent interview. He likened the rise of stablecoins to transformative technologies like spreadsheets, which catalyzed the early PC era, or GPS and mobile phones, which revolutionized communication and navigation.
The Role of Stablecoins
Stablecoins, particularly Circle’s USDC, are the linchpin of MoneyGram’s new app. These digital currencies offer users the stability of the U.S. dollar combined with the efficiency of blockchain technology. By pegging to the dollar, stablecoins mitigate the volatility commonly associated with cryptocurrencies, providing a reliable medium for international transactions. This is particularly advantageous for countries facing currency instability, like Colombia.
MoneyGram’s adoption of blockchain technology, specifically the Stellar network, underscores its commitment to fast and cost-effective transactions. Stellar is known for its low transaction fees and rapid processing times, making it an ideal choice for high-volume remittance services. The app also integrates Crossmint, a wallet infrastructure and stablecoin payments platform, to streamline the user experience.
Regulatory Framework and Global Reach
Soohoo highlighted the importance of regulatory clarity in the adoption of stablecoins. The recent passage of the GENIUS Act in the U.S. has provided a framework for how stablecoins are regulated, offering companies like MoneyGram clearer guidelines and the ability to innovate within legal boundaries. This regulatory certainty is pivotal as MoneyGram seeks to expand its app’s reach beyond Colombia.
Globally, MoneyGram operates in over 20,000 corridors, serving as a crucial link for millions of people who rely on remittances. With nearly half a million locations worldwide, the company stands as the largest cash on and off-ramp for cryptocurrency. It’s this extensive network that gives MoneyGram a significant edge in the global payments landscape.
“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 remarked. “We’ve been around for many years now, and our brand is truly global.”
Balancing Innovation with Caution
While the integration of stablecoins into MoneyGram’s ecosystem is a forward-thinking move, it doesn’t come without challenges. The volatility of cryptocurrencies, regulatory hurdles in various jurisdictions, and the need for customer education are significant issues that the company will need to navigate.
However, the potential benefits are substantial. For consumers, the app offers the ability to hold and store a stable currency, enabling real-time settlement and reducing reliance on traditional banking systems, which can be slow and costly. For MoneyGram, it’s an opportunity to cement its position as a leader in the digital transformation of remittances.
Looking Ahead
As MoneyGram rolls out its stablecoin-powered app in Colombia, the world will be watching closely. The success of this initiative could set a precedent for other companies in the remittance and financial services sectors. It could also accelerate the adoption of stablecoins and blockchain technology in mainstream finance.
For now, MoneyGram is taking a calculated step into the future, blending its vast experience in global remittances with cutting-edge digital finance solutions. It’s a move that could very well reshape the landscape of international money transfers, making them more efficient, affordable, and accessible to people around the globe.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
