Stellar (XLM)

Stellar is an open-source blockchain network built for fast, low-cost payments.
It focuses on cross-border transfers, stablecoins, and financial inclusion, acting as a bridge between traditional finance and blockchain.

What is Stellar?

Launch year: 2014
Token: Lumen (XLM)
Consensus: Stellar Consensus Protocol (SCP)
Focus: payments, stablecoins, remittances
Non-profit: run by the Stellar Development Foundation (SDF)

How Does Stellar Work?

Stellar Consensus Protocol (SCP): energy-efficient, fast finality.
Token issuance: anyone can issue assets (stablecoins, tokens).
Anchor model: trusted entities provide fiat on/off-ramps.
Cross-border focus: designed for global banking and remittances.

Why is Stellar Important?

Financial inclusion: designed for underbanked populations.
Stablecoin hub: supports USDC and other fiat-backed tokens.
Partnerships: works with IBM, MoneyGram, and NGOs.
Fast & cheap: transactions cost fractions of a cent.

Stellar Use Cases

Remittances & banking
Stablecoin payments (e.g., USDC on Stellar)
NGO & humanitarian aid distribution
Cross-border business settlements

Risks of Stellar

Competition: XRP Ledger, Algorand, and others target the same market.
Centralization concerns: SDF still controls much of XLM supply.
Adoption curve: banks often prefer private blockchains.
Regulation: cross-border payments face compliance hurdles.

Lanzo Tip 🪙

Stellar is like XRP’s cousin, but with a bigger focus on NGOs and financial inclusion. If you’re exploring stablecoin rails beyond XRPL, Stellar is worth watching — especially as USDC adoption grows.