Colombians Hedge Peso Woes with Dollar-Backed Stablecoin App

MoneyGram has launched a new mobile application in Colombia, allowing users to store and transact in USD-pegged stablecoins. The app is built on the Stellar blockchain and supported by wallet infrastructure provider Crossmint. Users can now receive money instantly into a US dollar balance backed by Circle’s USDC stablecoin, which can be stored, spent, or cashed out through MoneyGram’s global retail network. The move aims to address the volatility of local currencies, especially the Colombian peso, and provide a stable alternative for cross-border remittances.

The application targets a critical issue in emerging markets—local currency devaluation. Colombia, a major inbound remittance corridor, has experienced significant peso depreciation, losing over 40% of its value against the U.S. dollar in the past four years. Families in the country receive over 22 times the amount they send abroad, making a stable, dollar-denominated account an essential tool for preserving wealth. The new app is expected to expand to other remittance-heavy markets following its successful launch in Colombia.

MoneyGram has extensive experience in blockchain integration since partnering with the Stellar Development Foundation in 2021. The company has since developed cash on and off ramps for stablecoins, APIs for crypto integration, and incorporated stablecoins into its internal settlement processes. With nearly 500,000 retail locations globally, MoneyGram is leveraging its vast network to accelerate the adoption of stablecoins for everyday financial transactions.

CEO Anthony Soohoo emphasized that this launch is a step toward a world where every person can access dollar stablecoins. The company cited its decades of regulatory experience as a key factor in navigating the evolving stablecoin oversight landscape. The U.S. Congress recently passed the GENIUS Act, which establishes a framework for stablecoin regulation—something MoneyGram has highlighted as providing clearer guardrails for its operations.

The integration of stablecoins into consumer-facing services marks a significant shift in how traditional financial institutions approach digital assets. By offering users a safe, compliant, and accessible way to hold money in a stable currency, MoneyGram is positioning itself at the forefront of financial innovation. The company’s Chief Product and Technology Officer, Luke Tuttle, noted that they are delivering real stablecoin utility in a secure and compliant manner. The new app could significantly speed up the adoption of stablecoins, leveraging MoneyGram’s trusted name and global reach.

This initiative aligns with broader trends in the crypto market, where stablecoins are increasingly being used for real-life applications rather than speculative trading. MoneyGram’s focus on financial inclusion and stability positions it to address the needs of users in volatile markets. The company’s ability to provide a secure and compliant stablecoin solution could serve as a model for other financial institutions seeking to integrate digital assets into their services.