MoneyGram's New Stablecoin on Stellar: A Continuation or a Betrayal?

MoneyGram, a leading remittance network, has launched its own dollar stablecoin called MGUSD on the Stellar blockchain. This move has sparked controversy among crypto enthusiasts, with some claiming that it marks a significant loss for Ripple and XRP.

However, a closer look at the timeline reveals that MoneyGram's partnership with Ripple ended in 2021, long before the launch of MGUSD. The On-Demand Liquidity service, which used XRP as a bridge asset to facilitate cross-border payments, was shut down due to regulatory risks and price exposure.

MoneyGram chose Stellar for its new project because it was already building on the network's rails through MoneyGram Access, a service that allowed users to move between cash and the USDC stablecoin. The launch of MGUSD is more of a continuation of this existing relationship rather than a betrayal of Ripple.