MoneyGram Launches Stellar-Powered Stablecoin Visa Card in Colombia
MoneyGram has launched a virtual Visa card in Colombia that allows users to spend stablecoin balances through the Stellar blockchain, marking the money-transfer company’s entry into the stablecoin-linked card market.
The pilot is being developed through partnerships with Rain and Crossmint. Colombian users can access the card through the MoneyGram application after completing identity verification, then add it to Apple Pay or Google Wallet for contactless payments. According to the announcement
The service is designed to connect digital-dollar balances with everyday spending. For recipients of cross-border transfers, it could reduce the need to first withdraw or convert funds into cash before using them for purchases.
Stablecoin Card Connects USDC to Local Payments
The card uses USDC as its initial funding asset. Users keep their balances in the stablecoin until they make a purchase through the Visa network.
At checkout, the system converts the required amount of USDC into Colombian pesos for settlement. Merchants therefore receive local currency and do not need to accept, hold or process cryptocurrency directly.
The underlying infrastructure separates the blockchain and payment functions among several providers. Stellar handles the blockchain transactions, while Crossmint provides wallet custody infrastructure. Rain supplies the card issuance and stablecoin payment technology that connects users' digital balances with Visa payments.
For consumers, the arrangement is intended to make blockchain-based funds function more like conventional payment balances without requiring merchants to change their existing payment systems.
MoneyGram also plans to support MGUSD, its Stellar-issued stablecoin, as an additional funding option. That could bring the company's stablecoin initiative closer to its international money-transfer operations by allowing users to move from receiving funds to spending them within the same broader ecosystem.
Colombia Serves as the Initial Market
Colombia is being used as the pilot market as MoneyGram tests whether stablecoin-based payments can provide a practical bridge between cross-border transfers and everyday expenses.
Remittances are an important source of household income across Latin America, while access to dollar-denominated assets can be attractive to consumers dealing with inflation. The card could give recipients a way to retain digital-dollar exposure and spend those balances directly through a familiar payment network.
However, the model also introduces risks that differ from those associated with conventional bank accounts. Stablecoin balances are not bank deposits and are not covered by government deposit insurance programs.
Users can therefore remain exposed to risks involving cryptocurrency custody, underlying technology and the issuer of the stablecoin. These risks become particularly relevant when customers maintain substantial balances rather than using the card only for short-term spending.
Physical Cards and Regional Expansion Planned
MoneyGram expects to introduce physical versions of the card before the end of 2026. The physical cards are expected to support local-currency withdrawals through ATMs, extending the service beyond digital and contactless payments.
The company also plans to expand the offering to additional Latin American markets based on the results of its Colombian pilot.
The expansion could provide a broader test of whether stablecoin-powered cards can simplify the movement of money from international remittances into routine household spending.
For MoneyGram, the initiative combines its existing money-transfer network with blockchain-based payment infrastructure. For users, however, the convenience of spending digital dollars remains accompanied by the custody, technology and stablecoin issuer risks inherent in the underlying system.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.