MoneyGram’s redesigned app, launched October 19, lets US senders pay app users in Colombia and El Salvador, so money can stay in the app rather than be collected as cash.
Stablecoin infrastructure powers that balance, but MoneyGram has not said where it is available or which token backs it outside the US.
Payout is no longer the end of the transfer
The key change sits in one line of MoneyGram’s October 19 release: customers in the United States can now send directly to MoneyGram app users in markets including Colombia and El Salvador. The release lists app users alongside bank accounts, debit cards, third-party wallets and retail pickup as delivery options. The app is the only one of those where the money stays in a MoneyGram account after it arrives.
Commercially, the difference is how often MoneyGram earns from the same customer. A cash payout is one fee-earning event. A balance that stays in the app can feed further transfers, card spending and later withdrawals, each one running through MoneyGram.
Chief Product and Technology Officer Luke Tuttle presented the stablecoin layer as something users should never have to think about: “Our product strategy starts with the consumer, not the technology.” The app keeps the blockchain out of view. Whether recipients keep money in it depends on what holding a balance actually does for them, and that differs sharply between the two countries MoneyGram named.
Four months, three launches
The app is the consumer front end of an account system MoneyGram has been building since the spring.
June 2 · MGUSD
MoneyGram launched its own dollar stablecoin. Bridge issues it, M0’s infrastructure creates and destroys tokens as dollars enter and leave, and the token runs on Stellar. It debuted in the US inside a self-custodial wallet in the MoneyGram app, meaning the customer controls the funds rather than MoneyGram holding them on their behalf.
September 10 · MoneyGram Card
MoneyGram followed with a stablecoin-backed Visa card, available first in Colombia and built with Rain and Crossmint on Stellar. The card release described a cash route as well: customers send money from their balance to themselves and collect local currency at a MoneyGram location.
October 19 · The redesigned app
Transfers, dollar balances in select markets, bill payments, mobile top-ups and cash access now sit in one app and website, with support in 40 languages.
The sequence also leaves a gap. MGUSD launched in the US market. The Colombian card release describes a “stable-dollar balance” without naming the token behind it, and the October release refers only to stablecoin-powered capabilities in unnamed markets. MoneyGram has not said whether balances outside the US run on MGUSD.
A dollar balance means different things in San Salvador and Bogotá
El Salvador has used the US dollar as legal tender since 2001. A Salvadoran recipient already earns, spends and saves in dollars, so holding a dollar balance gives no protection against a weaker local currency. The only choice is between keeping the money in an app or taking it as cash. The app is worth keeping money in only if enough daily spending can happen digitally and a payout location is close when it cannot.
Colombia uses the peso, so a recipient who holds dollars instead of converting on arrival is making a currency decision. If the peso weakens, the same dollars buy more locally later. If it strengthens, they buy less. Holding gives the recipient control over timing, but it does not lock in a better rate.
That makes Colombia the market where the balance works as a financial product and El Salvador the market where it works as a convenience. It may also help explain why the card launched in Colombia first: a recipient holding dollars there needs a way to spend them without converting the whole amount.
Cash still sets the limits
MoneyGram counts nearly 500,000 retail locations and says it reaches more than five billion digital endpoints, including wallets, bank accounts and cards. The location figure covers the whole network, not just the outlets that handle balance withdrawals. The company says balances are offered only in select markets and that receive methods vary by corridor.
MoneyGram’s published app terms add the practical constraints. Fees and exchange rates vary with the amount, payment method, delivery method and pickup location. Funds availability can depend on agent or bank operating hours, system availability and regulatory checks. The June MGUSD release described a balance customers can access around the clock, which is true of the digital balance but not of the cash counter. For a recipient who pays rent or buys groceries in cash, the counter’s opening hours decide when the money is usable.
| Confirmed | Not disclosed in the announcements |
|---|---|
| US senders can pay app users in Colombia and El Salvador | The full list of markets offering dollar balances |
| MGUSD is issued by Bridge on Stellar and launched in the US | Which token backs balances outside the US |
| The MoneyGram Card has been live in Colombia since September | Numbers of app users or balance holders |
| A physical card with ATM access is planned for late 2026 | Per-market costs of turning a balance into local cash |
What would show recipients are staying
The case against the strategy is simple. MoneyGram has published no figures on app users or balances, so retention is the company’s stated aim rather than a measured result. Many remittance recipients need cash within days, and for them a balance is only a waiting room before the same payout. In El Salvador, the app also competes with every other place a recipient can already hold dollars.
Two signals could settle the question. The first is on-chain: MGUSD’s circulating supply on Stellar is publicly visible. Sustained growth through January 2027 would confirm that money is staying on MoneyGram’s rail after the app launch, while a flat supply would suggest recipients are still cashing out. The measure undercounts as long as MoneyGram leaves open which token backs balances outside the US. The second is the physical card promised for late 2026. Whether it ships by year-end, and whether MoneyGram names new balance markets alongside it, would show if the account model is spreading beyond Colombia.
This article is provided for informational purposes only and does not constitute financial advice.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP.
Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem.
To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem.
His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
Be the first to comment