MoneyGram has launched its own U.S. dollar-backed stablecoin on the Stellar (CRYPTO: $XLM) blockchain.
Privately held MoneyGram joins a growing list of payment companies and banks that are moving into stablecoins, or digital dollars as they’re known
The new stablecoin from MoneyGram is called “MGUSD” and is embedded into the MoneyGram app, allowing customers to hold a dollar-denominated balance in a self-custodial digital wallet. More From Cryptoprowl: Users can transfer funds through the company’s global payments network. The product is now available in the U.S. with plans for a broader international rollout in coming months.
Stablecoins are cryptocurrencies whose value is pegged to another asset, typically the U.S. dollar. Currently, stablecoins are one of crypto’s fastest-growing areas of digital finance, with growing interest from banks, fintech firms, and payment providers. Advocates say stablecoins offer cheaper, faster and around-the-clock settlements compared to traditional banking, making them increasingly popular for remittances.