MoneyGram's invisible blockchain revolution

Anthony Soohoo, Chairman and CEO of MoneyGram, believes that blockchain technology will transform the global payments industry—but only if it stays hidden from end users. In a wide-ranging interview, Soohoo detailed how MoneyGram's blockchain strategy has matured from early experiments into a comprehensive effort to overhaul the company's cross-border payment infrastructure. The goal, he said, is to make remittances faster, cheaper, and more transparent, all while keeping the underlying technology invisible to customers.

"The best technology is the one you don't even know is there," Soohoo said. "Our customers just want their money to arrive quickly and safely. They don't care about the rails. So we are building a system where blockchain does the heavy lifting behind the scenes."

The evolution of MoneyGram's blockchain strategy

MoneyGram first dipped into blockchain in 2019 through a partnership with the Stellar Development Foundation. The initial focus was on using Stellar's network to settle transactions between MoneyGram's digital wallets and traditional bank accounts. Over time, that partnership deepened, and MoneyGram began using Stellar for cross-border payments in select corridors, particularly between the United States and Mexico, and between Europe and Africa.

However, Soohoo emphasized that the company has now moved far beyond that initial pilot. "We learned a lot from Stellar," he said. "But we realized that to truly scale, we needed a multi-chain approach. No single blockchain can do everything." As a result, MoneyGram has taken on validator roles on the Solana network and on Tempo, a blockchain-based payments platform. These moves allow MoneyGram to process transactions on multiple chains, choosing the best route for each payment based on cost, speed, and reliability.

The MGUSD stablecoin: a key building block

A central piece of MoneyGram's new strategy is MGUSD, its own stablecoin launched earlier this year. MGUSD is pegged 1:1 to the US dollar and is used to settle transactions within MoneyGram's ecosystem. Soohoo explained that the stablecoin allows MoneyGram to bypass traditional banking rails for certain transfers, reducing costs and settlement times. "With MGUSD, we can move value instantly, 24/7, without waiting for bank clearing windows," he said.

MGUSD also opens the door for new financial products. MoneyGram is exploring lending and savings products built on top of the stablecoin, allowing customers to earn interest on their balances or take out small loans. "We want to become a financial super app for the unbanked and underbanked," Soohoo said. "Stablecoins give us the foundation to build those services."

Keeping blockchain invisible

Despite the deep integration of blockchain technology, MoneyGram is careful to keep the complexity away from customers. When a user sends money through MoneyGram's app or website, they see only the familiar interface: they enter the amount, the recipient's details, and the delivery method (cash pickup, bank deposit, mobile wallet). Behind the scenes, MoneyGram's system decides whether to route the payment through a blockchain network, a traditional bank, or a combination of both.

"Our customers don't need to know about tokens, validators, or consensus mechanisms," Soohoo said. "They just care that their money arrives in seconds, not days, and that it doesn't cost an arm and a leg." The results have been promising. MoneyGram reports that transactions routed through blockchain networks are on average 40% faster and 30% cheaper than those using conventional banking channels, especially for cross-border transfers between countries with different currencies and regulatory regimes.

Background: MoneyGram and the remittance market

MoneyGram is one of the world's largest money transfer companies, serving over 150 countries and processing billions of dollars in remittances each year. The remittance market is huge: according to the World Bank, global remittances reached $860 billion in 2025, with a large portion flowing from developed countries to developing nations. Traditional remittance services often charge high fees—sometimes up to 10% of the amount sent—and can take several days to process.

Blockchain technology promises to disrupt this model by enabling near-instant settlement at a fraction of the cost. However, adoption has been slow due to regulatory uncertainty, volatility, and the complexity of integrating blockchain with existing financial systems. MoneyGram's approach—using blockchain as a back-end plumbing solution while maintaining a familiar user interface—may be the key to bridging that gap.

Expanding partnerships and validator roles

MoneyGram's expanded blockchain footprint includes becoming a validator on Solana, one of the fastest-growing blockchain networks. As a validator, MoneyGram helps secure the network by processing transactions and adding new blocks. This role not only gives MoneyGram a say in the network's governance but also earns fees that offset its operational costs.

Similarly, MoneyGram has taken a validator role on Tempo, a blockchain focused on remittances and cross-border payments. Tempo's network connects multiple digital wallets and mobile money platforms across Africa, Asia, and Latin America, making it an ideal partner for MoneyGram's target markets.

Soohoo stressed that these partnerships are not just about cost savings. "Being a validator gives us deep insight into how these networks work," he said. "We can customize our integration to optimize performance and ensure reliability."

The role of Stellar in the new strategy

While MoneyGram is expanding to other blockchains, Stellar remains a core partner. The Stellar network is still used for a significant portion of MoneyGram's blockchain-based transfers, particularly for corridors where it offers the best combination of low fees and fast settlement. Soohoo noted that Stellar's decentralized exchange feature also allows MoneyGram to perform atomic swaps between different currencies without needing to hold large reserves.

"Stellar is a great general-purpose network for payments," Soohoo said. "But different use cases demand different chains. For high-volume, low-value transactions, Solana's speed is unbeatable. For certain fiat corridors, Tempo's connections are superior. We want to be chain-agnostic, picking the best tool for each job."

Industry context: blockchain's growing role in payments

MoneyGram's strategy reflects a broader trend in the payments industry. Major financial institutions, including JPMorgan, Visa, and PayPal, have all launched blockchain-based payment solutions in recent years. However, most of these initiatives have been limited to internal settlements or specific use cases. MoneyGram's approach is notable because it aims to integrate blockchain across the entire customer journey, from origination to delivery, while keeping the technology invisible.

Critics argue that blockchain is still too immature for mass adoption. Scalability issues, high energy consumption, and regulatory fragmentation remain significant hurdles. Soohoo acknowledged these challenges but said that the industry is making rapid progress. "The technology is improving exponentially," he said. "We are seeing faster block times, lower fees, and better interoperability every quarter."

Regulatory considerations

Regulation remains a key concern for any company using blockchain for payments. MoneyGram operates in dozens of countries, each with its own rules around money transmission, anti-money laundering (AML), and know-your-customer (KYC) requirements. Soohoo said that MoneyGram has worked closely with regulators to ensure that its blockchain operations comply with all applicable laws.

"We have always been a regulated financial institution," he said. "Blockchain doesn't change that. We still verify identities, monitor transactions for suspicious activity, and report as required." The company has also implemented an in-house compliance team that specializes in blockchain transactions, ensuring that every transfer meets the same standards as traditional ones.

Future plans and vision

Looking ahead, Soohoo envisions a world where the majority of cross-border payments flow through blockchain networks, with traditional banking rails used only as a fallback. "I believe we will see a tipping point in the next three to five years," he said. "As more countries develop digital currencies and more people get comfortable with digital wallets, the infrastructure will be ready."

MoneyGram is also exploring the use of blockchain for other services, such as bill payments, mobile top-ups, and even micropayments for content creators. "Once you have a fast, cheap, and transparent payment layer, you can build almost anything on top of it," Soohoo said. "We are just scratching the surface."

Ultimately, the success of MoneyGram's blockchain strategy will depend on execution. The company must maintain reliability, security, and compliance while scaling its multi-chain infrastructure. Soohoo is optimistic. "We have the team, the technology, and the partnerships to make this work," he said. "And we are committed to doing it in a way that our customers never have to think about it."

Source: Coindesk News