MoneyGram launches virtual Visa card backed by stablecoin in Colombia
Launch overview
MoneyGram introduced a virtual Visa card on Thursday that uses a stablecoin‑backed dollar balance inside its app. The card is currently available only in Colombia, with plans to expand to other markets later.
Key details
- The card spends the dollar balance at any merchant that accepts Visa, without converting to Colombian pesos.
- At launch the card is powered by USDC, a widely used stablecoin pegged to the US dollar.
- MoneyGram aims to route roughly $3 billion of its annual foreign‑exchange trading through stablecoins.
- No monthly or annual fee is charged; a purchase fee is also waived at launch.
- An inactivity fee may apply after three months of no use, though the amount is not disclosed.
How the card works
When a remittance arrives, the recipient can keep the dollars in the MoneyGram app and spend them directly with the virtual Visa card. Users can also transfer funds to themselves and withdraw local currency at any MoneyGram branch, of the company operates over 6,000 locations in Colombia.
Technical partners
Three firms support the product: Crossmint provides the wallets where balances are held, the Stellar network moves the funds, and Rain links the balance to Visa’s payment network. MoneyGram chose Rain for a single API integration that fits its existing providers.
Fees and limits
The card carries no monthly or annual charge and no purchase fee at launch. An inactivity fee is triggered only after three months of no activity, but the exact fee amount is not listed. Signing up requires identity verification inside the MoneyGram app.
Future plans
MoneyGram announced the feature in September 2025 and said a physical Visa or Mastercard debit card that works at ATMs will be released in late 2026. The company also plans to replace USDC with its own MGUSD stablecoin on the near future.
Why it matters
The card lets remittance recipients keep dollars in a digital wallet and spend them instantly, reducing the need to convert to local currency. This could lower costs and increase convenience for users in Colombia, a country that received $13.1 billion in remittances last year.
