Stablecoins enter the remittance scene as MoneyGram introduces USD-backed app, according to CEO Anthony Soohoo
MoneyGram Launches New Stablecoin App in Colombia
MoneyGram, a renowned money transfer company, has entered the stablecoin market with the launch of a new app that allows customers to hold and spend USD-backed stablecoins. The app, available initially in Colombia, is designed to cater to the growing demand for stablecoins as a USD proxy, particularly in emerging markets where currency volatility is a challenge.
The app will compete with other stablecoin-based USD dollar account products, such as Higlobe, which is already available in Colombia and several other markets. MoneyGram's strategic initiative behind this move aims to tap into a new customer demographic and expand its services in the digital currency space.
One of the key features of the app is the ability for customers to cash out and spend in local fiat currency at MoneyGram retail locations, without the need for a bank account. This feature is expected to be particularly beneficial in countries where access to traditional banking services is limited.
In addition, the app will eventually allow spending online or in-person using linked Mastercard or Visa debit cards, and the ability to top up the wallet using cash at MoneyGram retail locations. The product roadmap also includes deposit incentives via integrated savings options.
The launch of the stablecoin app is a continuation of MoneyGram's series of stablecoin-related moves. The company has already launched a stablecoin on and off-ramping solution and integrated stablecoin technology into its internal treasury operations.
An interview with the founder and CEO of MoneyGram, who developed the new stablecoin wallet product with fiat payment functionalities, provides insights into the motivation and strategy behind the company's stablecoin app launch. The company plans to roll out the app in other markets in the future.
MoneyGram's foray into the stablecoin market is a significant step in the company's efforts to adapt to the digital age and meet the evolving needs of its customers. As the company continues to innovate and expand its services, it is poised to remain a leader in the money transfer industry.
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