Uphold Adds Support for USDC on Stellar Lumens
Stellar Lumens (XLM) is a peer-to-peer decentralized network created by the Stellar Development Foundation (SDF) in 2014. Officially launched in 2015, Stellar aims to bridge the gap between the world's financial systems, providing a protocol for payment providers and financial institutions to transfer resources swiftly, reliably, and at minimal cost. By linking people, banks, and payment processors, Stellar facilitates the creation, sending, and trading of various cryptocurrencies.
By launching support for USDC on Stellar Lumens, we look to provide our users with increased flexibility when it comes to moving their blockchain assets, as well as seamless access to and from the Stellar ecosystem.
Project Overview
Stellar's mission is to democratize access to financial services, particularly in developing countries, by enabling fast, low-cost transactions. Stellar's primary focus is to assist individuals in transferring money efficiently, rather than catering solely to large financial institutions.
Project Utility and Function
Stellar's functionality is extensive, offering a decentralized exchange and marketplace with a built-in order book for tracking asset ownership. Users can manage buy/sell orders and choose their preferred assets for settlements. One of Stellar's standout features is its support for multi-currency transactions, enabling seamless cross-currency exchanges even between less commonly traded pairs. This capability significantly enhances foreign operations by ensuring stable speed and low transaction costs.
A unique aspect of Stellar's ecosystem is the concept of Anchors. Anchors act as bridges between different currencies and the Stellar network, simplifying and expediting exchanges. This innovation supports Stellar's goal of facilitating smooth, fast, and inexpensive transactions on a global scale.
Token and Token Utility
The native currency of the Stellar network is Lumens (XLM). Lumens serve as an intermediary currency for operations, facilitating quick conversions between different currencies and paying transaction fees. Each transaction on the Stellar network costs a mere 0.00001 XLM, making it an exceptionally cost-effective option for users.
Lumens also play a crucial role in maintaining network security. Holding at least one XLM is mandatory for network participants, which helps deter flood attacks and keeps microtransactions prohibitively expensive for potential hackers.
About the Founders
Stellar was founded by Jed McCaleb and Joyce Kim in 2014. McCaleb currently serves as the CTO of Stellar and co-founder of the Stellar Development Foundation.
The Stellar Development Foundation is a non-profit organization dedicated to unlocking the world's economic potential by making money more fluid, markets more open, and people more empowered. Under McCaleb's leadership, Stellar has secured significant partnerships, such as the collaboration with IBM to launch World Wire, a project enabling large financial institutions to transact using the Stellar network and bridge assets like stablecoins.
The Democratization of Financial Services
Stellar Lumens (XLM) stands out as a powerful tool for democratizing access to financial services, particularly in developing regions. With its low transaction costs, fast processing times, and robust security features, Stellar offers a compelling alternative to traditional and blockchain-based payment systems.
What does this mean for USDC?
Stellar USDC is easily accessible for exchanges, fintechs, institutional traders, and developers, enabling several use cases:
- Near instantaneous programmatic payments, anywhere in the world
- Trading, borrowing, lending etc. through blockchain applications
When using the Stellar Lumens, users also benefit from the faster transactions and lower fees associated when compared to other layer 1 networks such as Bitcoin and Ethereum. For more on Stellar, check out their website here.
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