Moneygram Debuts Stablecoin-Powered Cross-Border Transactions in Latam

Moneygram, a remittance industry giant, is gearing up to include stablecoin-powered operations for its cross-border transactions in Latam, adopting USDC in collaboration with Crossmint. The move aims to cut costs and retain users who are pivoting to stablecoins.

Moneygram Pushes Stablecoins in New App to Debut in Latin America

Moneygram, a global remittance platform servicing over 50 million users in 200 countries, has included stablecoins as part of its business model. The company is launching a new app that will leverage stablecoins to improve the user experience, partnering with several institutions to this end.

The new app, which will feature instant international transfers with real-time notifications, now allows for receiving and holding stablecoins, specifically USDC, in its embedded self-custody wallet provided by Crossmint, a wallet infrastructure and payments company.

While Moneygram’s user experience included mandatory cashouts in local currencies before, the new app includes the ability to save in digital dollars, a function that can be very useful in several economies around the world.

In the background, Moneygram’s implementation runs on top of Stellar, a low-cost, high-performance network that lets both users and the company enjoy a reduction in the fees associated with each operation.

The revamped app is slated to debut in Colombia first and will expand to other markets later this year. The service will also implement new use cases: adding cash directly to the wallet through affiliates, spending funds using a linked debit card, and offering incentives on deposits.

Moneygram, which has pushed to become a fintech company since it went private in 2023, has recognized the value of stablecoins and the possibilities they bring to the payments table. “The potential here is enormous, reshaping how we think about money, payments, and financial infrastructure,” said Anthony Soohoo, Chairman and CEO at Moneygram.

Stablecoins have become a killer app in the payments arena, and they are even now threatening the business models of financial companies.

According to Matthew Siegel, Vaneck’s Head of Digital Assets Research, downloads and the active user count of Moneygram and other similar companies dropped considerably in January, while stablecoin volumes have exploded ever since.