Enterprise Guide to Stellar USDC

How it Works

The Stellar Network

Stellar is an open financial network that allows money to be tokenized and instantly transferred anywhere in the world. It's like a global superhighway for money — built on blockchain technology — that can move money across any border for fractions of a penny in five seconds or less. Plus, you can access this superhighway from local roads all over the world.

Since 2014, Stellar has been connecting a growing global network of interoperable anchors; services that allow for digital value on Stellar to be deposited or withdrawn using local banking rails or payment networks. From Brazil to Nigeria, France to the Philippines, digital assets on Stellar can be on-ramped or off-ramped into local payment networks used by billions of people every day. To make interoperation easy, these anchor services follow ecosystem standards so they all work and connect in the same way. 

What does that mean for you? With one integration, your platform can access anchor services from around the world.  Stellar's built-in DEX means value can not only be moved instantly, it can also be exchanged instantly. An open liquidity protocol allows for easy and instant conversion between assets, even with no direct market.  ‍

USDC: a trusted asset

If Stellar is the superhighway, then USDC is one of the most reliable cars on the road. It's issued by regulated US financial institutions, backed by fully reserved assets, and redeemable on a 1:1 basis for US dollars. It's governed by Centre — a membership-based consortium that sets technical, policy, and financial standards for stablecoins — and it doesn’t fluctuate in value: one USDC is always equal to and redeemable for exactly one traditional US Dollar. You can read more about USDC on Circle.com.

It’s all about access.‍

Putting Stellar USDC to work

Many Stellar ecosystem businesses are currently working on integrations that will allow them to leverage USDC to improve their offerings and expand into new markets. Over the coming weeks, we'll be highlighting some of those businesses and explaining how they're using Stellar USDC, but for now, here are a few examples to illustrate what's possible:‍

Example 1: Getting Global SMEs Paid Locally

Scenario

A fintech company in East Africa wants to provide a wallet platform to SMEs in the region who need to collect payments from abroad.  

Solution

A Stellar integration allows SMEs to receive USDC payments, convert them into digital versions of local assets, and seamlessly withdraw those assets to their bank accounts.

Steps:

1. Using well-documented SDKs and following simple examples, the company integrates Stellar accounts into their platform.
2. They set up an anchor service to connect their banking integration to Stellar in order to provide users with a compliant way to move local currency on and off the network. 
3. And/or they create a client-side integration that connects to other anchors to allow for in-app withdrawal in the currencies those anchors support.

Users can now accept payments in USDC, convert to local currency, and seamlessly withdraw the value in-app to their local bank account. 

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Example 2: Remittances-As-A-Service 

Scenario

A US-based cryptocurrency wallet wants to reach new markets by allowing users to remit money abroad.

Solution

The Stellar-enabled wallet connects with a USDC anchor and with anchor services in destination countries to make compliant money transmission fast and easy.

Steps 

1. The wallet builds a client-side integration with a Stellar USDC anchor service that handles compliance and licensing solutions, like FinClusive. 
2. Using that integration, they initiate transactions to anchors in destination countries, who facilitate payouts to third-party bank accounts.
3. Since anchor services follow simple standards to pass customer information required by local regulations via API before accepting and executing transactions, the payments are seamless and compliant.    

Users can now send USDC to family and friends in countries like Nigeria or Brazil, who will receive the money directly in their local bank account and currency. 

Example 3: USD Savings for Anyone, Anywhere

Scenario

An Argentinian payments fintech wants to offer simple and secure digital dollar savings to its retail and corporate clients.

Solution

A Stellar integration allows users to deposit ARS and to easily convert it to and from USDC.  

Steps 

1. In order to streamline their Stellar integration, the company decides to enlist a third-party provider to custody Stellar accounts on behalf of their users.
2. They set up an anchor service to connect their banking integration to Stellar, providing users a compliant way to move ARS on and off the network. 
3. Their users can now deposit ARS on the Stellar network and easily convert it to and from USDC using Stellar's built-in order books.

Because Stellar makes asset conversion quick and cheap, users can hold a balance in dollars, and make daily payments in pesos.

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What’s next

It’s easy to see how Stellar USDC opens up new payment pathways and provides an alternative to legacy banking and payment systems. Are you excited to find out how this truly global dollar could benefit your business? 

For more examples of how businesses use Stellar, read our case studies.
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