Last Updated: March 2026
Stellar (XLM) is a blockchain designed for fast, cheap cross-border payments and asset tokenization. Founded by Jed McCaleb (Ripple co-founder), Stellar focuses on connecting financial institutions and enabling accessible payments globally.
History and Founders
Founded by Jed McCaleb (also co-founded Ripple and Mt. Gox) and Joyce Kim in 2014. The Stellar Development Foundation (SDF) is a non-profit overseeing the network. Stellar burned 55 billion XLM in 2019, reducing supply from 105B to 50B.
How Stellar Works
Stellar Consensus Protocol (SCP) enables 3-5 second settlement with minimal fees (~$0.00001). Designed for tokenized assets—any currency, commodity, or security can be represented on Stellar. Anchors (trusted entities) bridge fiat currencies to the network. See blockchain guide.
Tokenomics
Supply: 50B XLM (after burn). Utility: Gas fees, bridge currency for cross-border transfers. See tokenomics guide.
Use Cases
- Cross-border payments: Competing with SWIFT and XRP. See XRP comparison
- USDC on Stellar: Circle issues USDC on Stellar for fast, cheap stablecoin transfers. See stablecoin guide
- Asset tokenization: Real-world assets on Stellar
- Financial inclusion: Banking the unbanked in developing countries
Pros and Cons
- Pro: Non-profit foundation (aligned incentives)
- Pro: USDC partnership with Circle
- Pro: Near-zero fees, fast settlement
- Con: Limited smart contract capability vs Ethereum
- Con: Competes with XRP for same use case. See XRP analysis
Frequently Asked Questions
Is Stellar better than XRP?
Both target payments. XRP focuses on banks; Stellar focuses on individuals. Different approaches.
Does Stellar work with USDC?
Yes — Circle issues USDC on Stellar for fast, cheap stablecoin transfers.
Is XLM a good investment?
A bet on cross-border payments and USDC adoption on Stellar. Non-profit foundation.
