Stellar (XLM) is a public blockchain and native cryptocurrency built for fast, low-cost payments, asset issuance and cross-border value transfer. In practice, what Stellar is comes down to a payments network rather than a general-purpose smart contract platform. The native asset, XLM, pays transaction fees and helps prevent spam on the network.
Core technology and blockchain architecture
The network is a distributed ledger that settles transactions quickly and cheaply. It includes a built-in order book and path payments for exchanging assets, and it lets issuers create custom assets, including fiat-backed tokens.
Smart contracts arrived with Protocol 20 on 20 February 2024 through Soroban, now branded Stellar Smart Contracts. Contracts are written in Rust and executed as WebAssembly, and the Soroban documentation cites five-second smart contract finality.
Network changes ship as numbered protocol upgrades. Protocol 23 "Whisk" (3 September 2025) added parallel execution of smart contract transactions. Protocol 26 "Yardstick" (6 May 2026) introduced Quorum Freeze, which lets validators contain compromised assets through a consensus-driven mechanism.
Consensus mechanism and network security model
Stellar uses the Stellar Consensus Protocol (SCP), a form of federated Byzantine agreement. Instead of proof-of-work mining or proof-of-stake staking, each node chooses trusted quorum slices, and consensus emerges from overlapping trust relationships. A statement passes through three stages of federated voting: vote, accept and confirm.
The network has no mining and no block rewards, and its security depends on the quality and decentralization of validator selection. SDF Chief Scientist David Mazières authored the SCP white paper, and a 2019 academic paper, "Deconstructing Stellar Consensus", proves the protocol correct.
Primary use cases and real-world applications
Stellar describes itself as "the blockchain purpose-built for regulated finance." Its main uses are:
- Cross-border payments and remittances: Payments are final in about five seconds, which reduces the need to prefund accounts abroad.
- Stablecoin settlement: Circle issues USDC and EURC natively on the network.
- Cash on- and off-ramps: MoneyGram Ramps lets users convert physical cash into USDC and back, with cash-out listed in 170+ countries.
- Tokenized real-world assets: Issuers use the network for tokenized money market funds and similar products.
Who is behind Stellar and where is it based?
Stellar was co-founded in 2014 by Jed McCaleb and Joyce Kim. McCaleb founded Mt. Gox and co-founded Ripple Labs before leaving Ripple in 2013. CoinDesk describes Stellar as a modified fork of Ripple's code, and the network launched on 31 July 2014. Kim is a lawyer who co-founded the project and served as the foundation's executive director in its early years. Her current role is not confirmed by the sources reviewed.
The main organization is the Stellar Development Foundation (SDF), a nonprofit corporation in California with its headquarters in San Francisco. SDF describes itself as self-funded, tax-paying and without shareholders, and its jurisdiction is the United States. Denelle Dixon is CEO and Executive Director, and David Mazières is co-founder and Chief Scientist. In 2025, José Fernández da Ponte joined as President and Chief Growth Officer, coming from PayPal.
Tokenomics and supply
The network launched with 100 billion XLM. A 1% annual inflation mechanism ran for roughly five years until a validator vote ended it on 28 October 2019. On 4 November 2019, SDF sent 55,442,095,285.7418 XLM to an account with no signers, removing it from supply. SDF states that no more lumens will be created.
The original 12 billion XLM Direct Development allocation is escrowed and unlocks 3 billion XLM per year over four years, beginning in 2021. Fees are paid in XLM.
Market position
Stellar ranks #23 by market cap at $5.97B, with 24h volume of $92.61M. Circulating supply is 35,251,444,354 XLM, against a total supply of 50,001,786,837 XLM. The price of $0.1695 is down 1.06% over 24 hours and 22.69% over 30 days, and it sits 80.64% below the all-time high of $0.8756.
Key partnerships and ecosystem integrations
- Circle: Stellar became an Official Chain for USDC, and USDC and EURC are issued on the network.
- MoneyGram: The partnership was announced in October 2021 and extended on 22 April 2026, with a MoneyGram app stablecoin balance live in Colombia and extended to El Salvador.
- Franklin Templeton: The BENJI money market fund launched in April 2021 and was the first U.S.-registered mutual fund to record share ownership on a public blockchain. Stellar cites $605M in BENJI on the network as of 6 October 2026.
- PayPal: On 11 June 2025, PayPal announced plans to make PYUSD available on Stellar, pending New York State Department of Financial Services approval.
- DTCC: On 27 May 2026, DTCC and SDF announced plans to tokenize DTC-custodied assets on Stellar, with availability expected in the first half of 2027.
Competitive advantages and unique value proposition
Stellar's protocol enforces freeze, clawback and authorization controls natively, so issuers configure these features rather than writing contract code. Combined with fast finality, low fees and an energy-efficient consensus model, this makes the network suited to institutions and payment providers. Its value proposition centers on moving value across borders and between asset types, not on being a smart contract platform first.
Current development activity and roadmap
SDF's 2026 strategy targets $1 billion in growth in network asset value on Stellar. The Q1 2026 update reports more than 4,400 developers engaged during the quarter.
- Protocol 27 "Zipper": Testnet upgrade on 18 June 2026, with a mainnet vote on 8 July 2026. It adds authentication delegation for smart contract accounts.
- Protocol 28 "Adapter": Mainnet vote scheduled for 16 September 2026. It targets atomic upgrades for contract fleets and safer contract data migration.
- Protocol 30 "Bell": Testnet vote on 3 November 2026 and mainnet vote on 23 November 2026 at 1700 UTC. It includes multiplexed contract addresses, and validator approval is required for activation.