MoneyGram Joins Stellar as Tier 1 Validator, Deepening Blockchain Ties
In brief
- MoneyGram joined Stellar as Tier 1 validator, deepening partnership begun five years ago
- Tier 1 validators require three geographically dispersed nodes and 99.9% uptime maintenance
- Figure Markets and Range activate as Tier 1 validators by mid-August
- Stellar powers MoneyGram Ramps and digital dollar balance feature
From Ripple to Stellar
MoneyGram announced it has joined the Stellar network as a Tier 1 validator. The news comes five years after the company first partnered with the organization. Ripple invested $50 million in MoneyGram in 2019, and the companies launched a partnership centered on On-Demand Liquidity. MoneyGram suspended its use of Ripple's ODL service in early 2021 after the SEC sued Ripple in December 2020.
The Stellar relationship, by contrast, has expanded. MoneyGram and the Stellar Development Foundation first partnered in 2021 to create a blockchain-powered cash on- and off-ramp network. The service eventually went live in 2022.
Validator Role and Network Expansion
Tier 1 validators must operate three geographically dispersed full validator nodes and maintain at least 99.9% uptime. Validators are responsible for maintaining the blockchain's integrity by verifying transactions and participating in network consensus.
The new roster of validators will become activated by mid-August. Figure Markets and Range will also begin operating Tier 1 validators on Stellar.
Blockchain Infrastructure
Stellar powers MoneyGram Ramps, the company's blockchain infrastructure for cash access. It also serves as the exclusive blockchain behind MoneyGram's consumer digital dollar balance feature. Stellar's consensus model does not reward validators with newly issued tokens, which is typical for proof-of-work and proof-of-stake networks.
"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." — Josh Gordon-Blake, executive vice president and general manager of MoneyGram Online
The validator role reflects MoneyGram's confidence in Stellar's infrastructure. It's a concrete commitment to the network's long-term stability and growth.
Frequently asked questions
What is a Tier 1 validator on Stellar?
A Tier 1 validator on Stellar must operate three geographically dispersed full validator nodes and maintain at least 99.9% uptime. Validators are responsible for maintaining the blockchain's integrity by verifying transactions and participating in network consensus.
Why did MoneyGram switch from Ripple to Stellar?
MoneyGram suspended its use of Ripple's ODL service in early 2021 after the SEC sued Ripple in December 2020. MoneyGram and Stellar first partnered in 2021 to create a blockchain-powered cash on- and off-ramp network, which went live in 2022.
What blockchain services does MoneyGram run on Stellar?
Stellar powers MoneyGram Ramps, the company's blockchain infrastructure for cash access. It also serves as the exclusive blockchain behind MoneyGram's consumer digital dollar balance feature.
