MoneyGram International Inc. has announced an extended multi-year partnership with the Stellar Development Foundation to expand USD Coin services across Latin America. The initiative, revealed in Mexico City, aims to utilize blockchain infrastructure for faster, lower-cost cross-border transactions. The service is already live in Colombia and has now expanded to El Salvador with further rollout planned across Central and South America.
How Does the Technology Enable Faster Settlements?
The system operates through Stellar alongside Crossmint and Circle, enabling near-instant settlement and flexible cash access across MoneyGram's global network. Users in Colombia can receive funds in a USD-denominated balance, hold digital dollars, or convert to cash at trusted locations. This infrastructure bridges traditional fiat systems with digital assets to facilitate immediate cross-border payments.
Since 2021, the partnership has developed tools including a developer-facing API and one of the largest cash on/off-ramps for digital assets. For millions of cash-dependent families, this expansion offers faster access to funds and greater control over their money. The collaboration combines Stellar's institution-grade blockchain infrastructure with MoneyGram's global reach spanning over 200 countries.
Why Are Firms Integrating Stablecoins Into Mainstream Finance?
Anthony Soohoo, Chairman and CEO of MoneyGram, emphasized the focus on financial inclusion by building an open payments network that moves seamlessly across fiat and stablecoin. He stated that the partnership proves stablecoins can fundamentally change how millions send, receive, and hold money across borders. The initiative addresses regions where transfer costs often exceed 7%, significantly above the United Nations' 3% benchmark.
Denelle Dixon, CEO of the Stellar Development Foundation, noted that the collaboration expands access and lowers costs by delivering blockchain power in a seamless way for customers. The partnership reflects a broader trend of integrating blockchain infrastructure into mainstream financial services to improve efficiency for regions dependent on remittances.
Circle continues to extend USDC's utility in cross-border payments through strategic partnerships with Nium, Thunes, and Sasai Fintech. Data from DeFiLlama places USDC's market capitalization near $78 billion, second only to Tether. By utilizing blockchain rails, firms can offer faster, lower-cost settlements compared to traditional banking networks.
The system allows customers to instantly receive funds into a USD-denominated balance and cash out at trusted MoneyGram locations. This expansion offers real-world money infrastructure for billions of people who lack access to traditional financial services. The initiative aims to reduce reliance on prefunded liquidity while enabling near real-time transfers.