Moneygram, a global remittance giant serving over 50 million users in 200 countries, has officially launched stablecoin-powered cross-border transactions in Latin America, partnering with wallet infrastructure firm Crossmint and leveraging the Stellar blockchain. The new app allows users to send, receive, and hold USDC stablecoins in a self-custody wallet, marking a major shift from the company's previous cash-out model.
New App Features: Instant Transfers and Digital Dollar Savings
The revamped Moneygram app introduces real-time international transfers with instant notifications. At its core is an embedded self-custody wallet developed by Crossmint, which supports USDC stablecoins. Earlier, Moneygram users were required to cash out in local fiat currencies; now they can choose to keep funds in digital dollars—a feature particularly valuable in high-inflation economies across Latin America.
The app will first launch in Colombia, with expansion to other Latam markets later in 2025. Additional capabilities include the ability to add cash to the wallet through Moneygram agent locations, spend funds using a linked debit card, and earn incentives on deposits. These features aim to create a comprehensive fintech ecosystem around stablecoins.
Under the Hood: Stellar Network for Low-Cost Transfers
Moneygram’s stablecoin operations run on the Stellar network, a decentralized protocol known for low transaction fees and high speed. By moving settlement to Stellar, both the company and end-users benefit from significantly reduced costs per transfer, undercutting traditional remittance channels that often charge 6-7% or more.
“The potential here is enormous, reshaping how we think about money, payments, and financial infrastructure,” said Anthony Soohoo, Chairman and CEO of Moneygram. The company has been aggressively transforming itself into a fintech player since going private in 2023, and stablecoins are now central to that strategy.
Stablecoins Disrupting the Remittance Industry
Stablecoins have become a killer app in payments, and their rise is directly challenging traditional remittance firms. According to Matthew Siegel, Head of Digital Assets Research at VanEck, Moneygram’s app downloads and active user counts dropped sharply in January 2025, while stablecoin volumes exploded. Users are voting with their wallets, migrating to digital dollar rails for faster, cheaper transfers.
Moneygram’s move is both defensive and offensive: it retains customers who were otherwise leaving for pure crypto solutions, while also attracting a new generation of users comfortable with self-custody and digital assets. Industry analysts expect the stablecoin-powered service to lower the average cross-border remittance cost by more than half in corridors where it operates, while reducing transfer times from days to near-instant.
Market Outlook and Regulatory Considerations
Latin America received over $160 billion in remittances in 2024, making it the fastest-growing corridor globally. Colombia alone accounts for billions annually. The region’s high dollarization and banking access gaps make stablecoins a natural fit. However, regulatory clarity remains a hurdle. While Colombia has introduced sandbox frameworks for crypto, full licensing and AML compliance are essential for mainstream adoption.
Moneygram’s partnership with Crossmint, a regulated wallet infrastructure provider, and its use of Stellar’s compliant DEX (decentralized exchange) aim to address these concerns. The company plans to roll out similar services in other Latam countries including Mexico, Peru, and Argentina by the end of 2026.
Conclusion
Moneygram’s stablecoin integration marks a pivotal moment for the remittance industry. By combining its vast agent network with blockchain efficiency and user-friendly self-custody, the company is positioning itself as a bridge between traditional finance and the crypto economy. If successful, this model could be replicated across Africa and Southeast Asia, where remittance costs are even higher.