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Stellar Blockchain Use Cases | A Quick Explainer

This article takes a look at the use cases of this emerging blockchain.

By Bhuvan DeshwalPublished 9 months ago 4 min read

Stellar is an open-source blockchain that connects digital institutions and people worldwide. It is more affordable and efficient than other blockchain-based financial systems. Stellar blockchain solutions offer a wide range of use cases that are increasing fast. It provides security, decentralization, efficiency, and more to various blockchain projects. This article takes a look at the use cases of this emerging blockchain.

Understanding Stellar Blockchain

Stellar is an open-source network for issuing assets and making payments. You may generate, transfer, and trade digital representations of all currencies on Stellar.

Through a single network, Stellar enables free communication across all financial systems in the world.

The blockchain uses an eco-friendly syncing mechanism, proof-of-agreement. It completes the transaction within a few seconds.

Additionally, the platform charges minimal fees for transactions. Users require lumen, the native currency of Stellar, for money transfers.

Also, Read: Stellar Blockchain App Development | A Comprehensive Guide

Stellar Use Cases

From multi-currency transactions to FinTech solutions, we have listed the top Stellar use cases below:

Multi-currency Transactions

The processing of multi-currency transactions using Lumen is one of the top use cases of the Stellar blockchain.

If there isn't a direct market for two currencies, lumens serves as a bridge by enabling exchanges between them.

It is crucial in enabling international trade.

Cross-border Payments

Stellar blends the strength of a seamless, blockchain-based payment channel with the ability to live on- and off-ramps to many foreign currencies. It is possible with the help of local collaborators. These collaborators, known as Anchors, receive and disburse local fiat currencies while moving their values over the Stellar network.

Without the need for a middle bank, the service provider and the consumer can do business in their respective native currencies.

In essence, Stellar substitutes a single conduit for both the currency conversion and international wire processes.

Also, Read: Is Stellar Blockchain a Right Fit for Cross-Border Payment Solutions

Decentralized Exchange

Stellar assists exchanges in enabling compliant on/off ramps, including cash-in and cash-out points. Thus, it gives exchanges access to regional currencies in neglected regions, such as those lacking bank accounts.

Stellar uses Anchors to enable collaboration between conventional and digital financial institutions under one roof. Anchors are natively interoperable on/off-ramps within the Stellar network. They provide standardized services for changing local cash into Stellar-based assets and vice versa.


Middlemen lead to lengthy settlement periods and higher operational expenses. As a result, expanding remittance services to people who need them the most is difficult.

Stellar uses two effective payment protocols to track the transfer of digital representations of different currencies. Thus, it assists companies in facilitating international trade without middlemen like correspondent banks.

Businesses employing Stellar have direct access to an anchor network of partners to distribute and accept fiat (conventional currency).


Stellar is a tested blockchain network designed for interoperability between different international payment systems. It also sets the bar for compliance. Stellar enables fintech businesses to provide underbanked customers access to more financial products and global accessibility to USDC and other stablecoins.

Related Post: Building Next-Gen Fintech Solutions with Stellar Blockchain

Asset Issuance

Businesses can use Stellar to virtually represent financial items and physical assets, such as stablecoins, Central Bank Digital Currencies (CBDCs), and more. It enables clients to access their assets instantly, affordably, and timely.

Central Bank Digital Currencies (CBDCs)

Lumens' trust system makes it the most suitable for CBDCs. To ensure the security of Stellar, two assumptions are made.

First, each issuer is motivated to protect their asset and can be relied upon to tell the facts about that asset.

Second, while issuers desire to cooperate with other nations, they won't "cheat" or unilaterally violate the regulations if doing so would isolate them from the rest of the world.

The valuation of the assets in the blockchain and users' desire to maintain synchronicity with the parties issuing and redeeming those assets are the sources of governance authority. Since there is no central point of control, the system can ensure the interoperability, privacy, and safety of these assets.

Also, Read: Stellar Based Real-World Blockchain Solutions | Scanning the Stellar World


Stellar is promoting financial inclusion to individuals around the globe by utilizing blockchain technology. The network offers services similar to a traditional bank with a few significant variations. Stellar provides access to cheap financial services for people all over the world.

If you require a partner to build solutions on Stellar blockchain, then Oodles Blockchain can help you. Contact our Stellar developers if you want to develop and integrate Stellar applications from scratch. Our blockchain specialists will consult with you to determine your needs and what you'll require for your organization.

Hire blockchain developer, by doing so you can tap into his expertise in building secure and efficient blockchain solutions. They will be responsible for developing and implementing smart contracts, integrating our existing systems with blockchain platforms, and ensuring the security and scalability of our blockchain infrastructure.








About the Creator

Bhuvan Deshwal

Sr. Lead Business Analyst at Oodles Technologies

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