Payments company MoneyGram revealed that it has joined the Stellar network as a Tier 1 validator, marking a significant expansion in its ongoing collaboration with the blockchain-focused orga
Payments company MoneyGram revealed that it has joined the Stellar network as a Tier 1 validator, marking a significant expansion in its ongoing collaboration with the blockchain-focused organization. Based in Dallas, Texas, MoneyGram first partnered with Stellar in 2019 as it moved to integrate blockchain solutions into its global financial services.
In addition to MoneyGram, Figure Markets, a lending platform specializing in crypto-backed loans, and Range, a digital wealth management provider, will also begin operating as Tier 1 validators on the Stellar network. These new validators are expected to become fully operational by mid-August, according to the latest announcement from the Stellar Development Foundation.
Validators are a crucial component of blockchain networks, as they verify transactions and play a key role in network consensus. On the Stellar network, Tier 1 validators have heightened responsibilities. They are required to run multiple full validator nodes that are dispersed across different geographic regions, contributing directly to the Stellar Consensus Protocol. This design helps ensure both resilience and decentralization in the Stellar ecosystem.
Unlike many proof-of-work or proof-of-stake blockchains, Stellar’s consensus model does not provide financial rewards in the form of new tokens to its validators. Instead, organizations like MoneyGram choose to operate validators to support network security and the overall decentralization of the system.
To qualify as a Tier 1 validator, organizations must maintain at least 99.9% uptime and oversee three geographically distributed full validator nodes, among other technical requirements.
Mini dictionary: Stellar Consensus Protocol, a unique agreement mechanism used by the Stellar network to enable decentralized and trustworthy validation of transactions without relying on mining or traditional staking incentives.
Before its engagement with Stellar, MoneyGram was notably one of Ripple’s top enterprise partners. In 2019, Ripple, the company behind the cryptocurrency XRP, invested $50 million in MoneyGram, which led to a partnership centered around On-Demand Liquidity (ODL). ODL is Ripple’s product for instant cross-border settlements utilizing XRP.
This collaboration came to an abrupt end after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in December 2020. In response, MoneyGram halted its use of Ripple’s ODL service in early 2021 and subsequently turned to alternative blockchain solutions.
MoneyGram later entered into a strategic relationship with the Stellar Development Foundation in 2021. The partnership aimed to build one of the first large-scale blockchain-powered on- and off-ramp services for cash, with the initiative officially launching in 2022. Over time, the scope has extended beyond remittances to include a wider range of digital financial products.
InitiativeMoneyGram & RippleMoneyGram & StellarStart Year20192021Main FocusOn-Demand Liquidity with XRPBlockchain Ramps and Cash AccessStatusEnded (2021)OngoingCurrently, Stellar serves as the backbone for MoneyGram Ramps, the company’s blockchain-based service facilitating access to cash. Stellar is also the exclusive provider for MoneyGram’s consumer digital dollar balance feature, extending the scope of their technological partnership.
Josh Gordon-Blake, executive vice president and general manager of MoneyGram Online, explained the significance of becoming a validator on the Stellar network. He noted, “We have recently decided to become a validator on the Stellar network, and the reason why that’s so important to us is that we vividly see the benefits of crypto, the benefits of stables.” Gordon-Blake emphasized MoneyGram’s intention to remain at the forefront of technological innovation within the rapidly evolving digital asset landscape.
“We have recently decided to become a validator on the Stellar network, and the reason why that’s so important to us is that we vividly see the benefits of crypto, the benefits of stables,” said Josh Gordon-Blake, executive vice president and general manager of MoneyGram Online.
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