Moneygram, one of the world’s largest money transfer platforms with over 50 million users across 200 countries, has officially entered the stablecoin arena by launching a new app in Latin America that enables cross-border transactions and savings using USDC. The move is a direct response to the rapid shift of users toward stablecoins for remittances and savings, particularly in economies suffering from high inflation and limited access to traditional banking.
Self-Custody Wallet Meets Instant Transfers
The revamped app integrates an embedded self-custody wallet powered by Crossmint, a wallet infrastructure and payments company. Unlike the previous experience where users had to cash out in local fiat currencies, the new wallet allows recipients to receive and hold USDC—a dollar-pegged stablecoin issued by Circle. This feature is especially valuable in Latin American countries like Argentina, Venezuela, and Colombia, where domestic currencies are prone to rapid depreciation.
All transactions run atop the Stellar network, a low-cost, high-performance blockchain designed for cross-border payments. By leveraging Stellar, Moneygram aims to slash the fees associated with each transfer while maintaining speed and transparency. The new app also features real-time notifications and instant settlement.
Colombia will be the first market to receive the updated app, with plans to expand to other Latin American countries later in 2025. In addition to transfers and savings, the app will offer cash-in options at Moneygram agent locations, a linked debit card for spending funds, and deposit incentives.
From Remittance Giant to Fintech Player
Since going private in 2023, Moneygram has been aggressively pivoting toward becoming a fintech company. Chairman and CEO Anthony Soohoo commented: “The potential here is enormous, reshaping how we think about money, payments, and financial infrastructure.” He sees stablecoins as a way to retain users who are migrating away from traditional remittance services to crypto-native applications.
Data from VanEck’s Head of Digital Assets Research, Matthew Siegel, underscores the urgency: January saw a notable drop in downloads and active users for Moneygram and similar platforms, while stablecoin transaction volumes exploded. “Stablecoins are becoming the killer app in payments, threatening the business models of legacy financial companies,” Siegel noted.
Why Latin America?
Latin America is one of the world’s largest remittance corridors and also a hotspot for cryptocurrency adoption. High inflation, underbanked populations, and costly traditional transfer services create a perfect environment for dollar-pegged stablecoins. Moneygram’s USDC offering directly addresses these pain points, enabling users to send money across borders at a fraction of the cost and hold value in a stable asset.
Industry analysts view Moneygram’s move as a bellwether for how mainstream financial infrastructure is adapting to the crypto era. As regulatory clarity improves, more remittance giants are expected to follow suit—or risk losing market share. Moneygram’s Latin American pilot will serve as a critical test case for stablecoin-powered remittances at scale.