In an interview at Consensus 2026, MoneyGram Chairman and CEO Anthony Soohoo outlined how the company's blockchain strategy has shifted from experimental projects to a core part of its cross-border payments infrastructure. He emphasized that the technology works best when customers do not even know it is there – meaning the benefits of speed, lower cost, and transparency are delivered without requiring users to interact with cryptocurrencies or tokens directly.
Background: MoneyGram and the Remittance Market
MoneyGram International is one of the world's largest money transfer companies, operating in over 200 countries and territories. Founded in 1940 as a small telegraph company, it evolved into a financial services giant handling billions of dollars in remittances annually. The global remittance market is estimated to exceed $800 billion in 2026, driven by migrant workers sending money home. Traditional remittance channels rely on banks and money transfer operators, which often charge high fees and take days to settle. MoneyGram has long sought to leverage digital technology to reduce costs and speed up transactions.
The company's blockchain journey began around 2018 with a partnership with the Stellar Development Foundation. Early initiatives focused on using Stellar’s distributed ledger to settle transactions between MoneyGram’s network of agents, bypassing traditional correspondent banking rails. That pilot eventually led to a broader strategic shift, as blockchain proved its ability to handle high volumes with near-instant settlement and lower overhead.
The Evolution of MoneyGram’s Blockchain Strategy
According to Soohoo, the initial blockchain integration was essentially a back-end infrastructure choice. “We took a ‘blockchain as plumbing’ approach,” he said in the CoinDesk interview. “The user still walks up to a kiosk or opens a mobile app, selects their destination, and sends money. Behind the scenes, we use blockchain to move value in seconds rather than days.”
This approach separated the user experience from the underlying technology. Customers do not have to hold digital assets, manage wallets, or understand distributed ledgers. MoneyGram’s application layer handles conversion between fiat currency and stablecoins (like the MGUSD) as needed. The result is a faster, cheaper service that looks and feels exactly like traditional money transfer.
Soohoo noted that the company has now moved beyond the initial Stellar partnership. MoneyGram operates as a validator on the Stellar network, ensuring the integrity of transactions. More recently, it has expanded its blockchain footprint by taking on validator roles on Solana and the Tempo network. Tempo is a financial ecosystem built on the Stellar protocol, focused on providing digital identity and compliance tools. By running validators on multiple chains, MoneyGram gains redundancy, lower settlement risk, and the ability to route transactions over the most efficient network at any given time.
Validator Roles and Network Participation
Running validators is a critical part of MoneyGram’s blockchain strategy. Validators maintain the consensus mechanism of a proof-of-stake network, processing and verifying transactions in exchange for staking rewards. For MoneyGram, this role provides direct insight into network operations and ensures reliability. It also signals a long-term commitment to the underlying infrastructure.
“We’re not just a user of these blockchains; we’re a participant in their governance and security,” Soohoo explained. “That gives us confidence that the rails we depend on are robust and will continue to improve.” The company has teams dedicated to monitoring network performance, upgrading node software, and engaging with core developers. This hands-on involvement distinguishes MoneyGram from many other fintech firms that simply outsource their blockchain operations.
The MGUSD Stablecoin and Its Role
A central pillar of MoneyGram’s blockchain ecosystem is its own stablecoin, MGUSD. First announced in 2025, MGUSD is a fiat-collateralized stablecoin pegged 1:1 to the US dollar. It is issued on multiple blockchains, including Stellar, Solana, and Ethereum, and is fully backed by cash and cash equivalents held in regulated custodial accounts. MGUSD is designed primarily for internal settlement between MoneyGram’s agent network and liquidity providers, though the company is exploring its use in other financial products.
Soohoo described MGUSD as a “building block” for additional services. For example, MoneyGram could eventually offer interest-bearing savings accounts, micro-loans, or even investment tools denominated in MGUSD, all without exposing customers to volatile crypto assets. The stablecoin reduces the need for pre-funded fiat accounts at each agent location, as agents can hold MGUSD and convert it to local currency only when a payout occurs. This significantly cuts operational costs and hedge requirements.
The stablecoin also enables faster onboarding of new agents in emerging markets. An agent in Africa, for instance, can receive their float in MGUSD on a blockchain mobile wallet, then use MoneyGram’s infrastructure to dispense local currency. Because the stablecoin settles in seconds, the agent does not need to wait for bank transfers or maintain high-cost correspondence accounts.
Industry Context and Competition
MoneyGram is not alone in exploring blockchain for remittances. Rivals such as Western Union, Wise (formerly TransferWise), and Ripple’s ODL network have also adopted distributed ledger technology. Western Union has experimented with Ripple’s XRP, while Wise leverages a proprietary account network with some tokenized elements. Ripple’s ODL uses the XRP token as a bridge currency for cross-border payments. However, MoneyGram’s approach is notable for its emphasis on keeping blockchain invisible to end users and for integrating multiple blockchains rather than relying on a single protocol.
The company’s strategy also aligns with broader trends in the financial industry: tokenization of real-world assets, stablecoins as settlement vehicles, and the rise of decentralized finance (DeFi) tools in traditional banking. Central banks around the world are also developing central bank digital currencies (CBDCs), which could eventually interoperate with private stablecoins. Soohoo indicated that MoneyGram is actively monitoring CBDC developments and would integrate them where they provide benefits to its network.
Regulatory and Compliance Considerations
Operating across dozens of jurisdictions, MoneyGram must navigate a complex web of anti-money laundering (AML), know-your-customer (KYC), and sanctions regulations. Blockchain introduces new compliance challenges, particularly around transaction transparency and cross-border data flows. MoneyGram has invested heavily in blockchain analytics tools, partnered with firms like Chainalysis and Elliptic, and maintains a dedicated compliance team that monitors on-chain activity.
Soohoo noted that the company’s stablecoin, MGUSD, is fully regulated and subject to audits. “We treat MGUSD like any other licensed digital asset,” he said. “Our custodians are regulated, our reserves are regularly attested, and we are compliant with all applicable rules in the markets we serve.” This regulatory rigor has allowed MoneyGram to win approval for its blockchain-based services in places like the European Union, Singapore, and the United Arab Emirates, where cryptocurrency regulation is more mature.
At the same time, MoneyGram has avoided some of the pitfalls that have plagued other crypto businesses. The company never offered direct cryptocurrency trading to retail customers, preferring to keep blockchain as a back-end settlement layer. This has shielded it from the volatility and reputational damage associated with crypto winter cycles. The strategy has paid off: even as digital asset prices fluctuated wildly, MoneyGram’s transaction volume on blockchain rails grew steadily, now accounting for an estimated 30% of total digital transactions.
Future Outlook: Invisible Blockchain and the Next Billion Users
Looking ahead, Soohoo sees the potential for blockchain to expand into other areas of finance beyond remittances. MoneyGram is piloting blockchain-based invoice settlements for small businesses, where speed and low cost are crucial. It is also exploring microinsurance products bundled with remittance transactions, using smart contracts to automatically trigger payouts in case of natural disasters or illness.
The ultimate goal, he said, is to make money flow as easily as data flows on the internet. “You don’t think about the TCP/IP protocols when you send an email. You just write and click send. That’s where we want to get with money transfers. The infrastructure should be invisible, reliable, and globally accessible.” Achieving this will require continued investment in blockchain networks, partnerships with fintech firms and telcos, and careful navigation of regulatory climates. But MoneyGram believes its approach – blockchain as infrastructure rather than a product – is the right one for the mass market.
Soohoo’s comments at Consensus 2026 highlighted a key insight for the broader industry: for blockchain to reach the next billion users, it must disappear. That means delivering faster, cheaper, and more transparent services without asking customers to understand the underlying technology. MoneyGram is placing its bets on that philosophy, building a network that uses Stellar, Solana, Tempo, and its own MGUSD stablecoin to power the world’s payments – quietly, efficiently, and behind the scenes.
Source:Coindesk News