Stellar Lumens (XLM) Finding More Use Cases With SDF Partnerships
The Stellar Development Foundation (SDF) has deepened its partnership with the traditional payment processor, MoneyGram, and confirmed new partnerships across the globe. In July, MoneyGram and SDF announced the roll-out of a first-of-its-kind global on/off ramp "crypto-to-cash" service on the Stellar network.
Powered by the Stellar blockchain and Stellar-enabled digital wallets, MoneyGram’s retail agent network and Circle’s USD Coin (USDC), the service provides FIAT users access to the world of cryptocurrency in several key remittance markets, including Canada, Kenya, the Philippines and the U.S., with more markets to follow.
The service is a result of work that began in October 2021 when MoneyGram and SDF first reached a partnership. According to SDF, the service is a game changer in bridging the gap between physical and digital currencies on a global scale.
"This service is a monumental step towards bridging the gap between physical and digital currencies in a way that has not been done before at scale. As it develops, this solution will pave the way for blockchain technology to further financial inclusion, creating fluidity between cash and crypto so more people can benefit from the digital economy," SDF said in its press release.
SDF and MoneyGram are not ending their joint initiative with just the project. In March 2022, the two parties announced a partnership with Techstars, a global investment business that provides access to capital, one-on-one mentorship and customized programming for entrepreneurs. Together, they intend to embark on an accelerator project that will mentor startups developing technologies that facilitate the movement of money to and from Latin America.
Stellar’s Focus Blockchain-Powered Payment Services
SDF also has a string of other partnerships it has reached recently including Flutterwave, Nium, WhiteBIT, Coinme, Mercado Bitcoin and OKCoin. It has also partnered with governments agencies, including the central banks of Brazil, Ukraine and Indonesia, as well as the Bank for International Settlements (BIS).
The partnerships have all been in line with Stellar's roadmap for 2022, which it carried over from 2021, to improve the global adoption of cryptocurrencies in traditional cross-border payment circles. The roadmap also sets that the network would test its readiness for future capabilities focused on trust-minimized innovation based on interoperability and inclusion.
Stellar is looking to brainstorm how to achieve the goals listed in the last phase of its 2022 roadmap and plan for 2023 during its annual conference named Meridian.
How Many Stellar (XLM) Coins Are There in Circulation?
A total of 100 billion XLM were issued when the Stellar network launched in 2015 — but things have changed since the release date. At present, the total supply stands at 50 billion XLM, and the circulating supply is currently 20.7 billion.
In 2019, the Stellar Development Foundation announced that it was burning over half of the cryptocurrency’s supply. This means that it now controls approximately 30 billion XLM. While some of this capital is earmarked for marketing and helping the organization develop, about one third is reserved for making investments in other blockchain ventures.
Explaining why it took this drastic move — and promising not to burn any more XLM in the future — the foundation explained: “SDF can be leaner and do the work it was created to do using fewer lumens… Those 55.5 billion lumens weren’t going to increase the adoption of Stellar.”
How Is the Stellar Network Secured?
This network is secured using the Stellar Consensus Protocol, which is described as having four main properties: “Decentralized control, low latency, flexible trust, and asymptotic security.”
Through SCP, anyone is able to join the process of achieving consensus, and no single entity can end up with the majority of decision-making power. Transactions are also confirmed cheaply and within a few seconds — and safeguards are in place if bad actors attempt to join the network.