Learn
Stablecoins basics
Stablecoins are a digital currency tied to fixed assets, such as fiat currencies. Native platform features like speed, low cost, scalability and built in asset control features make Stellar the ideal network for issuing stablecoins.
How Stablecoins Work
We all need stability
Fiat-backed stablecoins are generally backed 1:1 by fiat reserves. This helps to ensure that the value of the stablecoin remains aligned with the value of its fiat peg. Often, stablecoins can be exchanged for an equivalent amount of fiat currency such as 10 USD stablecoins for $10 USD.
Consumers can access fiat-backed stablecoins with the help of on and off-ramps, exchanges and wallet applications. Many stablecoins can be purchased directly through a crypto exchange. While others are accessible through a digital wallet that supports 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 on the Stellar network
Stablecoins are “minted” or created by asset issuers. There are many asset issuers who have tokenized global fiat currencies on the Stellar network.
Benefits
Stablecoin issuance on the Stellar network
Speed
Transactions on the network confirm on average in just 3-5 seconds.
Low cost
The average cost per transaction on the network is just $0.000005 per operation.
Compliance and controls
Built-in account level features enable certain custom asset controls, such as KYC, Freeze and Clawback functionality.
Sustainability
Efficient by design, the network’s low energy consumption makes it one of the most sustainable blockchains.
Quick to market
Leverage the network’s built-in DEX, robust tooling, and network of trusted service providers to get to market with ease.
Scalability
Transactions on the network can reliably scale to meet your business needs.
Portfolio
Use cases
Instant retail payments
Accept low-cost point of sale payments for goods and services.
Cross-border payments
Make borderless near-instant payments including payroll, invoicing, remittances, and treasury management.
Hedge against inflation
Consumers in inflationary economies can hold stablecoins backed by global fiat-currencies to maintain a stable store of value for their money.
Case Study
Arf: supplying $1b in global liquidity
Find out how Arf uses USDC on Stellar to facilitate same-day settlements for financial institutions making global payments. Find out how USDC on Stellar helps to eliminate certain pre-funding and counterparty risk.
Learn More
Build with smart contracts
Smart contracts on Stellar enable a variety of new DeFi use cases on Stellar, allowing businesses to offer everyday financial services to their end-users. Find out how you can use the Stellar Asset Sandbox to test creating smart contract-enabled solutions like yield-bearing assets on the Stellar testnet with no code required.
Try Now
Explore stablecoin issuance
Learn to mint stablecoins on the Stellar testnet with no code required using the Stellar Asset Sandbox.
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