In a significant move to modernize financial transactions, MoneyGram is preparing to launch an innovative mobile application in Colombia. This platform will allow users to send, hold, and transfer funds utilizing USD-backed stablecoins, specifically focusing on USDC.
This service combines convenience with the security of a stored-value USD balance, enabling users to fund their accounts, receive money, and cash out seamlessly through MoneyGram’s expansive global network. The initial launch will take place in Colombia, setting the stage for subsequent expansions throughout the region.
Revolutionizing Money Transfers with Stablecoins
MoneyGram plans to utilize the Stellar blockchain for its operations, partnering with Crossmint to establish the necessary wallet infrastructure.
Users will benefit from a simplified experience as they won’t need to engage with private keys or pay gas fees directly; all blockchain complexities will be handled in the background by the app.
With over 6,000 retail outlets across Colombia, MoneyGram enables users to easily convert USDC into Colombian pesos, ensuring broad access to their services.
Say goodbye to lengthy processes in traditional finance
Introducing the next-gen MoneyGram® app:
Instantly receive funds internationally with real-time updates
… pic.twitter.com/E0CIn5QTup
— MoneyGram (@MoneyGram) September 17, 2025
Why This Matters to Users
Recent fluctuations in the Colombian peso, which has depreciated over 40% in the last few years, has led many to seek alternatives for preserving their purchasing power. Holding assets in a stable USD-pegged currency provides a viable solution.
The app aims to facilitate almost instantaneous fund receipts into USDC, thereby eliminating the delays often associated with traditional remittances.
Conversion to pesos will be easy at MoneyGram’s extensive network of agents, and future card functionalities are in the pipeline to allow consumers to transact in USD even while abroad.
Regulatory Landscape and Consumer Considerations
Regulatory bodies are examining the implications of this new product, focusing on how KYC (Know Your Customer) and AML (Anti-Money Laundering) rules will apply to its operations.
Colombia’s regulatory framework for stablecoins is still developing, and the specifics regarding consumer protections for stored USDC balances are not yet fully outlined, which could have ramifications for transfer limits, compliance requirements, and applicable fees.
Key Points for Users to Monitor
Potential users should keep an eye on the fees associated with converting between USDC and pesos, as well as any commissions charged by agents. Withdrawal costs also need further clarification in initial communications.
Additionally, maintaining the USDC peg and liquidity are crucial considerations. While stablecoins strive to remain stable, various market conditions can affect their value and backing.
MoneyGram plans to initiate the app’s offerings gradually and has hinted at future enhancements such as debit card capabilities for USD spending and attractive deposit incentives, though these features will not be available at launch.
The company emphasizes that the app is designed to offer users more flexibility in managing their finances without requiring in-depth knowledge of cryptocurrency.
Featured image from PlanetofHotels.com, graph from TradingView
