Colombians Hedge Against Peso Plunge With Dollar-Stablecoin App

MoneyGram has launched a next-generation mobile application in Colombia that allows users to receive, store, and manage money in USD-pegged stablecoins. The app is designed to provide a secure and stable financial environment for users in emerging markets where local currencies are prone to devaluation. By leveraging the Stellar blockchain and Circle’s USDC stablecoin, the platform enables instant cross-border transactions and access to a globally recognized stable currency. This initiative marks a significant evolution in cross-border payments and aligns with MoneyGram’s broader vision to integrate stablecoins into its global payment infrastructure.

The new app is initially rolling out in Colombia, a country where remittance inflows significantly outweigh outflows. According to data cited by MoneyGram, Colombian families receive more than 22 times the amount of money they send abroad, and the local peso has depreciated over 40% against the U.S. dollar in the past four years. The app addresses this volatility by allowing users to store their funds in stable, dollar-backed assets, thereby protecting their value over time. Users can receive money instantly into a digital USD balance, choose to hold it for stability, or withdraw cash at over 6,000 MoneyGram retail locations across the country.

The platform’s integration of blockchain technology enhances transparency and efficiency. Transactions are processed in seconds, and users receive real-time notifications and secure trackable links for visibility. Additionally, the app supports personalized messaging via WhatsApp, SMS, or the app itself, enabling users to communicate alongside their transactions. Luke Tuttle, MoneyGram’s Chief Product and Technology Officer, emphasized that the solution is built on “safe, secure, and compliant” infrastructure, leveraging Stellar’s blockchain and Crossmint’s wallet infrastructure to ensure reliability and scalability.

Anthony Soohoo, MoneyGram’s CEO, described the initiative as a step toward a future where financial access is universal. He highlighted the potential of stablecoins to redefine how money is moved and managed globally, especially in regions where traditional banking infrastructure is limited or unreliable. The company has already built the world’s largest cash on/off-ramp for digital currencies and integrated stablecoins into internal operations to improve efficiency and user value. With nearly 500,000 retail locations and over five billion digital endpoints globally, MoneyGram is positioned to scale the new app to additional markets following its launch in Colombia.

The app also supports future features such as adding cash directly into a USD balance through the MoneyGram retail network and using linked Visa or Mastercard debit cards for global spending in USD. These features aim to create a seamless, omni-channel experience that bridges physical and digital payment methods. As MoneyGram expands its stablecoin offerings, it is leveraging its extensive network and regulatory expertise to ensure compliance with global standards. The company has previously partnered with the Stellar Development Foundation and Circle, and its approach reflects a long-term strategy to democratize financial access and reduce the barriers associated with cross-border transactions.