Key Takeaways:
MoneyGram International has become a validator on the Solana blockchain and joined the Solana Developer Platform, marking the third network where the global payments company operates an official node as part of its expanding blockchain payments strategy.
"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," Anthony Soohoo, chairman and chief executive officer of MoneyGram, said in an interview. "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 of the Solana network. Joining the Solana Developer Platform gives the company access to tools for building and launching financial products alongside institutions including Mastercard, Soohoo said. Solana joins Tempo and the Midnight Network as blockchains where MoneyGram runs an official validator.
MoneyGram has spent more than five years building blockchain-based payment products. Its MGUSD stablecoin was developed with partners including Stripe-owned Bridge, Crossmint, Fireblocks, M0 and Stellar. The company has operated stablecoin cash on- and off-ramps with Stellar since 2021 and recently expanded off-ramp services through a partnership with crypto exchange Kraken. MoneyGram previously partnered with Ripple from 2019 to 2021, processing billions of dollars in transactions using RippleNet and XRP-based On-Demand Liquidity products before the partnership ended after the U.S. Securities and Exchange Commission sued Ripple.
"We've never viewed blockchain as an end in itself," Soohoo said. "We've viewed it as a tool that can help us make money movement faster, simpler and more accessible for customers around the world."
The validator move comes as traditional payments companies deepen their blockchain infrastructure investments. Polygon processed roughly 54 percent of all USDC transfers globally in April, according to Polygon Labs, while Meta began paying some creators in Circle's USDC stablecoin on Polygon and Solana through Stripe in late April. Visa added Polygon, Base, Arc, Canton and Tempo to its stablecoin settlement program in the same period.
The harder half of the stablecoin trade remains converting digital dollars into local cash. TransFi Chief Executive Officer Raj Kamal said on the On The Margin podcast that synchronizing the on-chain leg with the off-chain fiat payout leg is the critical challenge, adding that moving from a $10,000 demo to tens of millions in volume across a single corridor requires infrastructure that most projects have not yet built.
This article is for informational purposes only and does not constitute investment advice.
