MoneyGram and Stellar expand stablecoin-based remittances to El Salvador, enabling users to receive, hold, and cash out digital dollars.
The five-year partnership between MoneyGram International and the Stellar Development Foundation (SDF) has reached a new milestone with the expansion of stablecoin-based remittance services across Latin America. Announced during the “Stellar House” event in Mexico City, the initiative introduces the MoneyGram app’s stablecoin balance feature to El Salvador, following a successful pilot and launch in Colombia earlier this year.
The collaboration, which began in 2021, aims to modernize the global movement of money by bridging the gap between physical cash and digital assets. By leveraging the Stellar blockchain, the service allows users to receive funds in USD Coin (USDC), a stablecoin pegged to the U.S. dollar and issued by Circle. This digital balance can be held within the MoneyGram app as a hedge against local currency volatility, a critical feature in a region where inflation and currency instability are persistent challenges.
Bridging the Digital-Physical Divide
One of the partnership’s most significant achievements is the creation of what is now considered the world’s largest cash on-and-off-ramp for digital assets. For the millions of “unbanked” or cash-reliant families in Latin America, this means they can receive digital dollars and convert them into physical cash at any of MoneyGram’s 500,000 global retail locations.
The process is designed for simplicity: a sender in the United States can send USDC via the Stellar network, and the recipient in El Salvador can instantly see that balance in their MoneyGram app. They can then choose to keep it in dollars or walk into a local agent to withdraw it in physical cash. This “Ramp” technology effectively turns every MoneyGram storefront into a crypto-to-fiat exchange point, removing the need for a traditional bank account or complex exchange registrations.
A Regional Crypto Powerhouse
The expansion comes at a time when Latin America is emerging as a global leader in stablecoin adoption. According to market data from early 2026, average remittance costs in the region have fallen toward 2.5% when using blockchain rails, compared to the traditional 6% to 8% seen in previous decades. In El Salvador, which made headlines for its Bitcoin adoption, the shift toward stablecoins like USDC represents a move toward lower-volatility digital assets for daily use.
Anthony Soohoo, Chairman and CEO of MoneyGram, emphasized that the company is moving beyond theoretical financial inclusion. “We are building an open payments network that moves seamlessly across fiat and stablecoin,” Soohoo stated. He noted that while everyone talks about inclusion, this partnership is delivering it by connecting billions of devices to a physical retail ecosystem.
Looking Ahead: 2026 and Beyond
The El Salvador launch is just the beginning of a broader 2026 roadmap. MoneyGram and Stellar plan to roll out these services across additional markets in Central and South America throughout the year, with a long-term goal of global scalability. This expansion also benefits from the MoneyGram Ramps API, which allows third-party digital wallet developers to plug into MoneyGram’s physical network.
Denelle Dixon, CEO of the Stellar Development Foundation, noted that the partnership delivers blockchain power in a way that is “seamless and intuitive” for everyday users. As the service scales, it is expected to reshape settlement expectations across the continent, moving from multi-day waiting periods to near-instant availability. By combining Stellar’s fast, low-cost blockchain infrastructure with MoneyGram’s 85-year legacy of trust, the two entities are defining the future of cross-border payments.
About the Author
Jennifer Sakmufuwo Baba is a tech analyst and writer covering artificial intelligence, fintech, and emerging technologies at TechRegard. Based in Nigeria, she's passionate about translating complex tech developments into compelling, accessible stories for diverse audiences. Her work focuses on how technology shapes innovation across Africa and globally.
