Stellar (XLM) is a peer-to-peer (P2P) decentralized network established in 2014 by The Stellar Development Foundation or Stellar.org. The network was officially launched in 2015 with the aim of connecting the world's financial systems and providing a protocol for payment providers and financial institutions. The platform is designed to facilitate the swift and reliable movement of financial resources at minimal cost. Stellar connects people, banks, and payment processors, enabling users to create, send, and trade various types of cryptocurrencies. The core of the network is its native digital currency, XLM or Lumens. XLM serves as an intermediary currency for transactions and is also used to pay transaction fees. The protocol operates by converting money within seconds, initially into XLM, and subsequently into the desired currency. The Stellar payment protocol is grounded in distributed ledger technology—an open-source development, owned and distributed by the community. The crypto asset of the Stellar platform aids in cross-border transactions, addressing the challenges of high fees and slow procedures. XLM is particularly geared towards assisting individuals in transferring money rather than focusing on institutions. Consequently, Stellar provides access to financial systems and enables people to send money globally at low cost and promptly. Additionally, Stellar functions as a decentralized exchange and marketplace, featuring a built-in order book that tracks the ownership of Stellar assets. Platform users can manage buy/sell orders and select and establish their preferred assets during settlements. XLM is an integral coin that contributes to reducing transaction fees. The network ensures a high level of security. XLM holders must possess at least one token to remain active on the network. This requirement serves a global purpose—the efficient execution of network transactions with minimal time costs. Furthermore, Lumens provide protection against flood attacks by making microtransactions prohibitively expensive for hackers, ensuring the Stellar Network remains safeguarded against significant threats. Stellar's target audience includes inhabitants of developing countries and ordinary users who are granted access to the global economy through fast, simple, and affordable transactions. The Stellar Network heavily utilizes Lumens to facilitate live conversions and to send cash in multiple currencies; currency is sent from one peer, and the recipient can receive the amount in a different currency. This feature is advantageous when transactions are made between currencies without widely traded pairs. Support for multi-currency transactions is another key advantage of Stellar, with the capability for cross-currency transactions enhancing processes involving foreign operations. Moreover, stable speeds and low transaction costs are a privilege offered to users. This functionality is supported by a development known as Anchors (a bridge between different currencies and the network), which simplifies exchanges within the network and expedites the entire process. In summary, the benefits of Stellar (XLM) include:

Jed McCaleb, in collaboration with lawyer Joyce Kim, founded Stellar following his departure from Ripple in 2013 due to disagreements regarding the company's future trajectory. In September 2020, McCaleb articulated the rationale behind Stellar's creation to Eulerpool, stating: "The entire original design of Stellar is intended to facilitate the coexistence of fiat currencies and other forms of value alongside crypto assets. This is crucial for bringing these technologies into the mainstream." McCaleb's objective is to ensure that Stellar provides a solution for individuals to convert their fiat currencies into crypto, thus removing the typical obstacles encountered when transferring money globally. He presently functions as the Chief Technology Officer of Stellar and is a co-founder of the Stellar Development Foundation. This nonprofit organization aims to "unlock the world's economic potential by enhancing monetary fluidity, opening markets, and empowering individuals."

Fees are a significant consideration for many users. High costs for cross-border payments are not limited to fiat-based payment solutions like PayPal; transaction fees can also escalate on the Bitcoin and Ethereum blockchains due to congestion. Stellar distinguishes itself by offering transaction fees of just 0.00001 XLM. Considering that one unit of this cryptocurrency is priced at only a few cents at the time of writing, this ensures users retain more of their funds. Few blockchain initiatives have succeeded in securing partnerships with major technology companies and fintech firms. A few years back, Stellar collaborated with IBM to launch World Wire, a project enabling large financial institutions to submit transactions to the Stellar network and conduct transactions using bridge assets like stablecoins. While other blockchains have community funds to provide grants for projects that advance their ecosystem, Stellar uniquely allows its users to vote on which initiatives should receive this support.

At the launch of the Stellar network in 2015, a total of 100 billion XLM were issued. However, significant changes have occurred since then. Currently, the total supply is 50 billion XLM, with a circulating supply of 20.7 billion. In 2019, the Stellar Development Foundation announced the burning of more than half of the cryptocurrency’s supply. As a result, the foundation now retains control over approximately 30 billion XLM. A portion of these funds is allocated for marketing efforts and supporting organizational development, while about one third is reserved for investments in other blockchain ventures. When discussing the rationale behind this substantial reduction—and committing not to burn any more XLM in the future—the foundation stated: “SDF can be leaner and do the work it was created to do using fewer lumens… Those 55.5 billion lumens weren’t going to increase the adoption of Stellar.”

The network is secured by the Stellar Consensus Protocol, which is characterized by four primary properties: decentralized control, low latency, flexible trust, and asymptotic security. With SCP, anyone can participate in the consensus process, ensuring that no single entity holds the majority of decision-making power. Transactions are confirmed both cost-effectively and swiftly, typically within a few seconds. Additionally, safeguards are implemented to protect the network from malicious actors attempting to join.

Stellar can be purchased from a variety of leading exchanges, including Binance, Coinbase, Kraken, Bittrex, Bitfinex, Upbit, and Huobi. It is also common practice to convert fiat currency into Bitcoin prior to purchasing altcoins, and more information about this process can be found in our guide.

Stellar is an open network designed to facilitate the movement and storage of money. Launched in July 2014, Stellar initially aimed to enhance financial inclusion by targeting the global unbanked population. However, its focus soon shifted towards enabling financial institutions to connect via blockchain technology. The network’s native token, lumens, acts as a bridge, reducing the cost of trading assets across borders. This approach challenges existing payment providers, who frequently impose high fees for comparable services. For those familiar with the sector, it is noteworthy that Stellar was initially derived from the Ripple Labs protocol. The blockchain emerged from a hard fork, followed by a complete code rewrite.

The Stellar Development Foundation (SDF) has strengthened its collaboration with the traditional payment processor MoneyGram and announced new partnerships worldwide. In July, MoneyGram and SDF unveiled a groundbreaking global "crypto-to-cash" on/off ramp service on the Stellar network. Utilizing the Stellar blockchain and Stellar-enabled digital wallets, along with MoneyGram’s retail agent network and Circle’s USD Coin (USDC), the service offers FIAT users access to cryptocurrencies in several key remittance markets, including Canada, Kenya, the Philippines, and the U.S., with expansion to additional markets planned. This service stems from a collaboration that began in October 2021 when MoneyGram and SDF first partnered. According to SDF, the service is transformative in bridging the gap between physical and digital currencies on a global level. "This service represents a monumental step towards bridging the gap between physical and digital currencies in an unprecedented manner at scale. As it evolves, this solution will pave the way for blockchain technology to enhance financial inclusion, creating smooth transitions between cash and crypto so a broader audience can benefit from the digital economy," SDF stated in its press release. SDF and MoneyGram are broadening their initiative beyond this project. In March 2022, the two entities announced a partnership with Techstars, a global investment firm that provides access to capital, one-on-one mentorship, and tailored programs for entrepreneurs. Together, they plan to launch an accelerator project to mentor startups creating technologies that facilitate the transfer of funds to and from Latin America.

The Stellar Development Foundation (SDF) has recently established a series of partnerships with organizations such as Flutterwave, Nium, WhiteBIT, Coinme, Mercado Bitcoin, and OKCoin. Additionally, it has collaborated with government agencies, including the central banks of Brazil, Ukraine, and Indonesia, as well as the Bank for International Settlements (BIS). These partnerships align closely with Stellar's 2022 roadmap, which was carried over from 2021, aiming to enhance the global adoption of cryptocurrencies within traditional cross-border payment frameworks. The roadmap outlines plans for the network to test its readiness for future capabilities, emphasizing trust-minimized innovation grounded in interoperability and inclusion. Stellar is also strategizing on how to achieve the objectives outlined in the final phase of its 2022 roadmap and is preparing for 2023 during its annual conference, Meridian. For detailed information, you can refer to Eulerpool.