MoneyGram has partnered with Crossmint to launch a new stablecoin-based remittance service, starting in Colombia. The service integrates Crossmint’s wallet infrastructure to enable instant USDC remittances, allowing recipients to receive U.S. dollars converted into USDC in Crossmint-powered wallets.
Users can hold funds in USDC to hedge against local currency volatility, cash out to Colombian pesos at over 6,000 MoneyGram locations, or, in the future, spend globally via linked Visa or Mastercard debit cards.
The platform, built on the Stellar blockchain, simplifies cross-border transfers by offering instant settlement, low costs, and compliance with AML and KYC regulations, without requiring users to have blockchain knowledge. MoneyGram plans to expand this service to other Latin American markets.
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The MoneyGram and Crossmint partnership for instant USDC remittances has several implications and benefits for on-ramping and remittances: By using USDC, a stablecoin pegged to the U.S. dollar, MoneyGram bridges traditional finance and crypto, potentially increasing trust and adoption among users unfamiliar with blockchain technology.
The service simplifies the on-ramping process by integrating fiat-to-USDC conversion within MoneyGram’s extensive network, making crypto more accessible to non-technical users in regions like Colombia. Starting in Colombia and planning expansion across Latin America signals a growing trend of stablecoin-based financial services in emerging markets with volatile currencies.
This move could pressure traditional remittance providers (e.g., Western Union) and other fintechs to adopt blockchain-based solutions to stay competitive. As stablecoin remittances grow, regulators may increase oversight to ensure compliance with AML/KYC standards, which MoneyGram has already addressed in this partnership.
Instant conversion of fiat to USDC via Crossmint’s wallet infrastructure eliminates complex crypto exchange processes, lowering the entry barrier for new users. Blockchain-based transactions typically have lower fees than traditional banking systems, reducing costs for users converting fiat to crypto.
MoneyGram’s 6,000+ locations in Colombia provide physical touchpoints for users to on-ramp funds, especially in underserved areas with limited banking access. Unlike traditional remittances, which can take days, USDC transfers on the Stellar blockchain settle instantly, improving user experience.
Recipients can hold funds in USDC to hedge against local currency volatility, a significant advantage in markets like Colombia with fluctuating exchange rates. Recipients can cash out to pesos at MoneyGram locations or, in the future, spend USDC globally via linked debit cards, offering versatile use cases.
Blockchain-based remittances reduce intermediary fees, making cross-border transfers more affordable compared to traditional methods. The partnership’s planned expansion and integration with global payment networks (Visa/Mastercard) could enable seamless cross-border spending and transfers.
Stablecoin adoption has been growing steadily, driven by their ability to combine the stability of fiat currencies with the efficiency of blockchain technology. Stablecoin transaction volumes have surged, with over $8 trillion in on-chain transactions in 2024 alone, according to reports from blockchain analytics like Chainalysis.
USDC and Tether (USDT) dominate, with USDT holding ~70% of the market share. Use cases like remittances, cross-border payments, and DeFi (decentralized finance) are driving this growth, as seen in MoneyGram’s USDC-based service in Colombia.
Stablecoins are increasingly used for remittances due to low fees and instant settlement. For example, services like MoneyGram’s partnership with Crossmint on the Stellar blockchain reduce costs compared to traditional providers (e.g., fees of 5-10% for remittances vs. <1% for stablecoin transfers).
Emerging markets with volatile currencies (e.g., Latin America, Africa) are seeing higher adoption, as stablecoins like USDC provide a hedge against inflation. Partnerships like MoneyGram-Crossmint and others (e.g., Visa’s integration with USDC on Solana) show traditional financial institutions embracing stablecoins to modernize payment systems.
Banks and fintechs are exploring stablecoin settlement for faster, cheaper cross-border transactions, with 68% of fintech executives surveyed by Ripple in 2024 expressing interest in stablecoin solutions. Stablecoins are the backbone of DeFi, accounting for ~60% of DeFi’s total value locked (TVL) in 2025, per DeFiLlama data.
They enable lending, borrowing, and trading without volatility risks. This drives adoption among crypto-native users, who then use stablecoins for real-world applications like remittances. Compliance with AML/KYC, as implemented in MoneyGram’s service, ensures stablecoins align with global financial standards.
Merchants in high-inflation regions are adopting stablecoins to avoid currency devaluation, with platforms like BitPay reporting a 30% increase in stablecoin payments in 2024. By leveraging USDC, MoneyGram strengthens its competitive edge against traditional remittance providers and crypto-native platforms, appealing to cost-conscious users in volatile markets.
Stablecoin adoption is accelerating, particularly in remittances and emerging markets, driven by cost savings, speed, and stability. The MoneyGram-Crossmint partnership exemplifies this trend, leveraging USDC and Stellar to offer a user-friendly, scalable solution for Latin America.
Overall, this partnership streamlines on-ramping and remittances by combining MoneyGram’s established network with Crossmint’s blockchain expertise, offering faster, cheaper, and more flexible financial solutions, particularly in emerging markets.