MoneyGram Launches Stablecoin on Stellar; Now Available in Colombia

MoneyGram, the global remittances giant with more than 85 years of history and over 60 million active customers across more than 200 countries and territories, has taken a major step into everyday digital finance. 

The company has introduced the MoneyGram Card, a virtual Visa debit card powered by stablecoins and built on the Stellar blockchain. 

The pilot is live first in Colombia, marking a practical bridge between traditional money transfer and modern crypto payments.

This move represents more than a new product. It signals MoneyGram’s broader “refounding” around stablecoin infrastructure. 

After years of building crypto-to-cash and cash-to-crypto ramps, launching its own stablecoin, and routing significant foreign-exchange volume through blockchain rails, the firm is now giving customers a direct way to spend stable-dollar balances at merchants that accept Visa. 

The result is a familiar card experience backed by digital assets, designed for markets where remittances matter and currency volatility is a daily concern.

Key Takeaways

• MoneyGram has launched a stablecoin-backed Visa card on the Stellar network, starting in Colombia, that lets customers spend dollar-denominated balances directly.
• The card uses USDC at launch (with MoneyGram’s own MGUSD expected soon) and converts automatically at checkout for seamless Visa payments.
• It keeps remittance funds inside the MoneyGram ecosystem, turning one-time recipients into ongoing customers while improving settlement efficiency.

How the MoneyGram Card Works

Customers in Colombia complete identity verification (KYC) inside the MoneyGram app, then request the virtual Visa card. Once issued, the card can be added instantly to Apple Wallet or Google Wallet. From there, users can:

• Tap to pay at physical retailers
• Check out faster in stores
• Shop online anywhere Visa is accepted

Behind the scenes the architecture is straightforward yet powerful. Balances are held in stablecoins (initially Circle’s USDC). 

When a purchase occurs, the system automatically converts the stablecoin amount into local fiat (Colombian pesos) for settlement through Visa’s network.

Merchants never need to handle crypto; they simply see a standard Visa transaction. Cash access remains available: users can transfer funds from their MoneyGram balance and pick up local currency at a nearby MoneyGram location. The company operates thousands of such points in Colombia alone.

The card currently carries no monthly or annual fees and no purchase fees at launch, though an inactivity fee may apply after three or more months of no activity. 

Importantly, stablecoin balances are not bank deposits and are not covered by government deposit-insurance programs, a point MoneyGram has highlighted for transparency.

Why Stellar and Why Colombia?

Source: X/Moneygram

MoneyGram chose the Stellar network for its speed, low cost, and existing relationship with the company. Stellar already supports MoneyGram’s earlier stablecoin work, including the issuance of MGUSD earlier this year. 

Partners Rain and Crossmint complete the stack. Rain’s single-API approach allowed MoneyGram to add the card layer without overhauling its existing partner ecosystem.

Colombia was a logical first market. It is a major inbound remittance corridor; the country received roughly $13.1 billion in remittances in the prior year, up more than 10 percent. 

The Colombian peso has weakened against the dollar over the past decade, making a stable-dollar balance especially attractive for recipients who want to protect purchasing power and spend without constant conversion friction. 

By keeping funds inside the MoneyGram app rather than forcing an immediate cash-out, the company turns a one-time transaction into an ongoing relationship.

Read Also: Visa Crypto Card Spending Surges 525% as Stablecoin Use Hits Record Highs

From Remittance Endpoint to Daily Financial Tool

For most of its history, MoneyGram’s core business ended when the recipient collected cash. The sender paid the fee; the receiver walked away. The MoneyGram Card changes that dynamic. 

Money arrives as a dollar-denominated stablecoin balance that can be spent immediately. Recipients no longer need to convert to local currency or move funds off-platform. A service used once a month can become part of everyday spending.

Anthony Soohoo, Chairman and CEO of MoneyGram, framed the launch clearly: “We’re giving customers more freedom and control to manage their money, all in one place. 

The MoneyGram Card builds on the power of our global payments network, bringing a stable-dollar balance, everyday spending and cash access into the MoneyGram experience customers already use and trust.”

Stablecoins also solve an operational challenge for MoneyGram itself. Traditional remittances often involve multi-day settlement on the backend even when the customer experience feels instant. 

MoneyGram prefunds local accounts to eliminate lag for receivers, but that float is expensive across more than 200 markets. 

Stablecoins settle nearly instantly, allowing agents and treasury teams to free up capital and streamline operations. MoneyGram is already on pace to route roughly $3 billion of its annual FX trading through stablecoin rails.

Product Roadmap and Technical Details

The current virtual card is only the first phase. Key planned developments include:

• Support for MoneyGram’s native stablecoin MGUSD (issued on Stellar via Bridge, a Stripe subsidiary)
• Physical cards expected by the end of 2026 that will enable ATM withdrawals of local currency
• Expansion beyond Colombia to additional Latin American markets and eventually broader regions

At launch the card is powered by USDC. MGUSD is positioned as the longer-term foundation for a wider suite of financial services across MoneyGram’s network. 

MGUSD itself is a permissioned asset on Stellar; the issuer controls authorization and can revoke access if needed.

The table below summarizes the core features and timeline:

Read Also: Stellar Protocol 28 Upgrade: Could It Push XLM Price Higher?

Broader Context: Stablecoins Move to the Checkout Counter

Source: Paymentscan

MoneyGram’s card arrives as stablecoin usage expands beyond trading into remittances, payments, and corporate treasury. Industry data has shown monthly stablecoin card spending volumes exceeding $1 billion in recent periods. 

Other remittance players have also partnered with card issuers; Rain, for example, previously launched a similar product with Western Union. 

The combination of familiar Visa acceptance, instant settlement, and dollar stability is proving attractive in emerging markets.

MoneyGram’s multi-year investment in the space, beginning with crypto on- and off-ramps in 2022, followed by MGUSD issuance, Solana cash ramps, and validator participation, positions the company to treat stablecoins as core infrastructure rather than an experiment. 

The card completes the loop: receive, hold, and spend without leaving the platform.

Risks and Considerations

Users should understand that stablecoin balances carry different risks from traditional bank deposits. There is no deposit insurance. 

Currency conversion still occurs at the point of sale, and exchange rates or network fees can apply depending on the specific transaction. 

Regulatory frameworks for stablecoins and crypto-linked cards continue to evolve, particularly in Latin America. MoneyGram has emphasized compliance-led partners and identity verification as foundational elements.

Read Also: XLM Price Prediction 2030: Can Stellar Reach $1?

Conclusion

The MoneyGram Card illustrates how legacy financial networks can absorb blockchain technology without forcing customers to become crypto experts. 

A recipient in Colombia who once waited in line for cash can now hold a stable-dollar balance and spend it with a tap. 

For MoneyGram, the product extends the customer relationship, improves capital efficiency, and opens new service layers built on the same rails.

As the company rolls out physical cards and additional markets, and as MGUSD takes a larger role, the experiment will provide useful data on whether stablecoin-powered cards can scale across remittance corridors. 

Early signals from Colombia will be closely watched by both traditional finance and the broader crypto industry.

MoneyGram launches stablecoin infrastructure that turns remittances into spendable balances; MoneyGram releases stablecoin products including MGUSD on Stellar; the MoneyGram stablecoin-backed Visa card brings those balances to everyday merchants; MoneyGram in Colombia serves as the first live market; and moneygram launches stablecoin on stellar to power the entire flow.

Stay informed about the latest developments in stablecoins, remittances, and crypto payments. 

For ongoing analysis, market updates, and deeper coverage of blockchain innovations, visit the Bitrue blog regularly and follow our latest articles on the evolving crypto landscape.

FAQ

1. Where is the MoneyGram Card currently available?

It is live first in Colombia through the MoneyGram app. Expansion to other markets is planned in the coming months.

2. Which stablecoin powers the card at launch?

USDC is used initially. MoneyGram’s own MGUSD, issued on Stellar, is expected to follow.

3. Can I use the card for cash withdrawals?

Virtual cards support transfers to MoneyGram locations for local-currency pickup. Physical cards with ATM access are planned for late 2026.

4. Are there fees for using the MoneyGram Card?

There are no monthly or purchase fees at launch. An inactivity fee may apply after three or more months without activity; users should review the full fee schedule in the app.

5. Is my balance protected like a bank deposit?

No. Stablecoin balances are not bank deposits and are not covered by government deposit-insurance programs.

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