$XLM
Native Asset
Layer 1 Cross-Border Payment Network — $XLM
$XLM is the native token of the Stellar blockchain — a Layer 1 protocol built for global payments, asset issuance, and fiat interoperability. Stellar’s core mission is to improve financial access, particularly in underbanked and emerging markets. $XLM is used for transaction fees, bridge liquidity, and cross-asset transfers. Unlike other smart contract chains, Stellar prioritizes speed, stability, and simplicity over on-chain programmability.
Use Case: $XLM enables frictionless cross-border payments, stablecoin issuance, and digital asset transfers with minimal fees — making it ideal for remittance, NGOs, and mobile financial platforms.
Key Concepts:
- Cross-Border Payments — Send fiat-pegged assets globally in seconds.
- Tokenization — Anchors issue fiat-backed tokens like USD, EUR, NGN.
- Anchor Network — Off-chain custodians mint trusted stablecoins on-chain.
- Inflation Mechanism — Early protocol used inflation to distribute new $XLM.
- Federated Consensus — Custom consensus model (FBA) for fast, low-energy validation.
Summary: $XLM powers Stellar’s high-speed payment network focused on inclusion, low fees, and fiat compatibility. It offers a lightweight blockchain alternative to traditional remittance systems and centralized fintech rails — used by real partners for real-world value movement.
Mini History of $XLM
$XLM was launched in 2014 by Jed McCaleb (former Ripple co-founder) and Joyce Kim as part of the Stellar Development Foundation. It was created as an open, community-first alternative to Ripple, with a mission to “bank the unbanked.” The Stellar network uses a custom Federated Byzantine Agreement (FBA) for rapid consensus and low energy use.
Unlike other networks, Stellar distributed its token supply through airdrops and charitable initiatives rather than an ICO. It built out a global anchor system to tokenize fiat currencies, allowing users to send digital USD, EUR, or NGN across borders in seconds. Stellar has formed partnerships with IBM, MoneyGram, and global NGOs to deliver low-fee payment rails in developing regions. Today, it remains a foundational blockchain for inclusive financial infrastructure — fast, lightweight, and purpose-driven.