MoneyGram becomes Solana validator, expands blockchain payments strategy

Global payments company MoneyGram has become a validator on the Solana blockchain and joined the Solana Developer Platform, marking its entry into the Solana ecosystem.

The move expands MoneyGram's blockchain payments strategy and makes Solana the third network where it operates an official validator, alongside Tempo and the Midnight Network, MoneyGram CEO and Chairman Anthony Soohoo told The Block.

"As blockchain infrastructure becomes increasingly important to global payments, we believe institutions that rely on these networks should also contribute to their security, resilience, and long-term development," Soohoo said. "By becoming a validator, MoneyGram contributes to the long-term strength of the ecosystem."

Operating a validator allows MoneyGram to stake SOL tokens, process transaction blocks, and contribute to the security and performance of the Solana network. Joining the Solana Developer Platform gives MoneyGram access to tools for building and launching financial products on Solana alongside institutions, including Mastercard.

MoneyGram has already built some blockchain-based payment products and partnerships over the years. Its MGUSD stablecoin is built with partners including Stripe-owned Bridge, Crossmint, Fireblocks, M0, and Stellar. Since 2021, MoneyGram and Stellar have launched stablecoin cash on- and off-ramps, the MoneyGram Ramps API, and in-app stablecoin balances, Soohoo noted. The company also recently expanded its off-ramp services through a partnership with crypto exchange Kraken.

"We’ve spent more than five years building real-world payment solutions using blockchain and stablecoins. We’ve never viewed blockchain as an end in itself. We’ve viewed it as a tool that can help us make money movement faster, simpler, and more accessible for customers around the world," Soohoo said.

MoneyGram previously also partnered with Ripple in 2019 and used RippleNet and XRP-based On-Demand Liquidity products, with the companies processing "billions of dollars" in transactions, according to Ripple. Ripple also paid MoneyGram millions of dollars in fees as part of efforts to expand into new markets.

The partnership ended in 2021 after the U.S. Securities and Exchange Commission sued Ripple, alleging the company conducted a $1.3 billion unregistered securities offering through XRP sales. The case reached a final resolution late last year, leaving in place a landmark 2023 ruling that found XRP itself is not inherently a security and that its sales on public crypto exchanges did not violate securities laws, though Ripple's direct sales to institutional investors were found to violate federal securities laws. Ripple previously said both companies remained committed to revisiting their relationship in the future. When asked whether MoneyGram could partner with Ripple again, Soohoo said, "We are not in a position to comment on any future partnership arrangements."