MoneyGram, the well-known network for sending and receiving cash, has incorporated U.S. dollar-pegged stablecoins and blockchain settlement technology into its updated mobile app, as announced by the company on Wednesday.
Customers in Colombia, where MoneyGram boasts a vast retail network of over 6,000 locations, will be the first to utilize the new app for receiving and storing stablecoin payments, with plans for expansion to other markets soon.
Colombia serves as the perfect launch pad, according to MoneyGram CEO Anthony Soohoo. It represents a major inbound remittance corridor, with families receiving more than 22 times what they send abroad, while the Colombian peso has depreciated over 40% in the last four years.
Regarding the rise of stablecoins, Soohoo likens it to transformative applications such as the original spreadsheet in the early PC era or the impact of the browser on the Internet, as well as GPS technology and mobile phones.
“Stablecoins truly are the killer app for crypto, and I believe we are just beginning to explore their potential,” Soohoo shared in an interview. “Our clients can hold and store a stable currency that allows for real-time settlement. With the passage of the GENIUS Act in the U.S., we now have a regulatory framework to guide us.”
Internally, the new MoneyGram app is powered by Circle’s USDC stablecoin and the efficient Stellar blockchain, alongside Crossmint, a platform for wallet infrastructure and stablecoin payments.
Looking at the bigger picture, MoneyGram operates close to half a million locations where customers can either pick up cash or send money, according to Soohoo. The company serves over 20,000 corridors globally as a remittance provider and is also the largest cash on and off-ramp for cryptocurrency, he noted.
“In global payments, many companies may have a strong presence and brand recognition in one market, but outside of places like the U.S. or the U.K., they may be unknown,” Soohoo explained. “We have established ourselves over many years, and our brand is truly global.”
