MoneyGram, the global funds transfer service, has added stablecoin support to its remittance payment infrastructure. The company has unveiled a new app that will enable users to process cross-border transactions via stablecoins. The app will first be rolling out in the Latin American region.
MoneyGram’s stablecoin integration is being supported on the Stellar network. Announcing the development, the Stellar blockchain will make the platform capable of conducting fast and low-cost payments. MoneyGram has also onboarded the Crossmint wallet infrastructure and stablecoin payments solution to support these stablecoin transactions.
“Transferred funds are delivered in seconds along with a secure, trackable link for the sender’s visibility. Plus, add a personalized message for your recipient. Recipients are sent real-time notifications via WhatsApp, SMS or the MoneyGram app,” the Dallas, Texas-headquartered company said in its statement.
MoneyGram, which is touted as a remittance giant, said that in the recent years currencies like the Colombian pesos have logged a devaluation. However, the platform has assessed that stablecoins linked to the USD can help remittance-dependent regions to improve their economies.
“Receivers can choose to convert their funds into a stable USD balance – stored in a self-custody wallet that only they can access. Now with stable USD, they can protect against devaluation and withdraw as much as they want – when they want – into local currency at MoneyGram locations,” MoneyGram noted.
Users of this new app will be able to add cash directly into the USD balance via MoneyGram’s retail network. Users will also be able to spend online or in-person via USD with debit cards — dodging exchange rates. Users will also be able to earn incentives on deposits through integrated savings options.
“You can hold your money in dollars. Inflation and losing money are no longer worries. You can cash out your USDC balance in local currency at any time, subject to current exchange rates and fees,” the app noted.
MoneyGram has created a waitlist for interested individuals to join ahead of the app’s rollout in the coming days. The rollout of the platform outside the Latin American region, however, has no definitive timeline for now.