Stablecoins are a type of digital currency that are tied to fixed assets like fiat currencies or gold. The Stellar network was designed for issuing digital assets like stablecoins, before stablecoin was even a word. Native platform features like speed, low cost, scalability and built in asset control features make Stellar the network for issuing stablecoins.
How Stablecoins Work
Fiat-backed stablecoins are backed 1:1 by fiat reserved in insured accounts that are strictly dedicated to stablecoin redemption. This helps to ensure that the value of the stablecoin remains aligned with the value of its fiat peg. That means consumers can exchange their stablecoins for an equivalent amount of fiat currency such as 10 USD stablecoins for $10 USD.
These consumers can access fiat-backed stablecoins with the help of on and off-ramps, exchanges and wallet applications. More specifically, they can purchase their stablecoin of choice directly through a crypto exchange or use a digital wallet to access stablecoins supported by on and off-ramps like MoneyGram.
Keep in mind, not all stablecoins are supported by all digital wallets, exchanges or on and off-ramps.
Stablecoins are “minted” or created by asset issuers. There are many asset issuers who have tokenized global fiat currencies on the network.
USDC and EURC on Stellar leverage the efficiency and reach of the Stellar network to power innovative financial services for your institution.
AUDD is a fully collateralised, digital Australian dollar stablecoin issued by Novatti.
Transactions on the network confirm in just 3-5 seconds.
The average cost per transaction on the network is just $0.000005 per operation.
Built-in account level features enable custom asset controls, such as KYC, Freeze and Clawback functionality.
Efficient by design, the network’s low energy consumption makes it one of the most sustainable blockchains.
Leverage the network’s built-in DEX, robust tooling, and network of trusted service providers to get to market with ease.
Transactions on the network can reliably scale to meet your business needs.
More to Explore
The Stellar network was made to support digital representations of any currency, but it also has its own native token called the lumen (XLM).
Smart contracts are self executing programs run on the blockchain network. Learn about the history, concept and applications of this technology.
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