MoneyGram Launches Stablecoin-Powered Payments App

MoneyGram’s Chief Product and Technology Officer, Luke Tuttle, said the company is “delivering real stablecoin utility in a safe, secure, and compliant way.” The launch targets a key issue for users in many emerging markets: local cy devaluation. The initial market, Colombia, is a significant inbound remittance corridor where families receive over 22 times the amount of money they send abroad.

Furthermore, the Colombian peso has lost over 40% of its value against the U.S. dollar in the past four years, making a stable, dollar-denominated account a valuable tool for preserving wealth. MoneyGram already has an extensive network of over 6,000 locations in the country.

In a statement, MoneyGram CEO Anthony Soohoo described the move as the future of money itself. “Stablecoins really are the killer app for crypto and I think we’re just at the dawn of all the possibilities,” Soohoo said. “Our customers are able to hold and store a cy that is stable and allows for real time settlement.”

MoneyGram could greatly speed up the widespread use of stablecoins for everyday financial needs by leveraging its well-known name and large global network, which helps more than 50 million people every year. This project gives digital assets a real-life application, with a focus on financial inclusion and keeping users safe from unstable local economies rather than selling for profit.