Stellar (XLM)

Stellar is an open network for sending payments and issuing digital versions of money, such as stablecoins. Its native asset is the lumen, usually called XLM.

Stellar focuses on making it easier and cheaper to move money across borders and between digital and traditional money.

Stellar was founded in 2014 by Jed McCaleb, who also co-created the XRP Ledger, and Joyce Kim. It is supported by the Stellar Development Foundation (SDF), a nonprofit (about SDF (opens in a new tab)).

Its goal was to give more people access to low-cost financial services, especially people underserved by traditional banks.

1. 2014

   Stellar launches, supported by the nonprofit Stellar Development Foundation.

2. 2015

   Stellar adopts its own consensus method, the Stellar Consensus Protocol.

3. October–November 2019

   The network ends its yearly inflation of new lumens, and SDF destroys about 55 billion XLM, leaving about 50 billion in total.

4. 2021

   MoneyGram and SDF launch a service to turn cash into USDC on Stellar, and back.

5. February 20, 2024

   Smart contracts (called Soroban) go live on Stellar (Stellar announcement (opens in a new tab)).

Stellar keeps a shared ledger that updates about every five seconds. Instead of mining, independent computers called validators each choose which other validators they trust, and those overlapping circles of trust agree on the next ledger. This is the Stellar Consensus Protocol (opens in a new tab).

Transactions are made of operations, such as “send a payment,” “create an account,” or “trust a new asset” (operations (opens in a new tab)).

Fees are tiny, typically 0.00001 XLM per operation, and accounts must hold a small minimum balance in XLM.

Stellar is the network. XLM (lumens) is its native asset, used mainly to pay fees and meet minimum balances. Many payments on Stellar are actually in other assets, such as digital U.S. dollars (USDC), not XLM.

Anchors are businesses, such as payment companies, that connect Stellar to traditional money. They take in cash or bank deposits and issue matching digital assets on Stellar, and do the reverse when people cash out. These connections are often called ramps.

For example, MoneyGram (opens in a new tab) lets users of supported wallets turn cash into USDC on Stellar, or USDC back into cash, at participating locations. This kind of on- and off-ramp is central to Stellar's goal of financial access.

• It is supported by a nonprofit foundation with a financial-access mission.
• It is built around anchors that connect digital assets to cash and bank accounts.
• Many payments on it are in stablecoins rather than its own lumens.
• It uses the Stellar Consensus Protocol, not mining.

• 1

  The smallest unit of a lumen is a “stroop,” one ten-millionth of an XLM.

• 2

  In 2019, the Stellar Development Foundation destroyed about 55 billion lumens, more than half the supply at the time.

• 3

  Stellar co-founder Jed McCaleb also helped create the XRP Ledger.

• Myth: Stellar and XRP are the same project.

  Fact: They share a co-founder and some ideas, but they are separate networks with different designs and organizations.

• Myth: Every Stellar payment uses XLM.

  Fact: Many payments use other assets, such as USDC. XLM pays fees and minimum balances.

• Myth: An anchor is part of the Stellar network itself.

  Fact: Anchors are separate businesses, each with its own rules, fees, and identity checks.

Specific to Stellar

• XLM's price can be very volatile.
• When you use an anchor, you depend on that business. Check that it is reputable and regulated where you live.
• Scammers impersonate well-known projects, including Stellar, with fake airdrops and giveaways.

For every cryptocurrency

• Prices can rise or fall sharply, sometimes within hours. Only people who can afford to lose the money should consider buying any cryptocurrency, and CLC does not recommend buying, selling, or holding any.
• Transactions usually can't be reversed. If you send to the wrong address, or to a scammer, the money is usually gone.
• Whoever controls the keys controls the coins. Anyone who learns your recovery phrase can take everything. No real company or helper will ever ask for it.
• Scammers use well-known names. Fake giveaways, “guaranteed returns,” and impersonated celebrities or companies are common. Learn the warning signs in our Resource Center.
• Rules differ by country and can change. Taxes may apply when you sell or spend cryptocurrency.

Lumen (XLM)

Stellar's native asset.

Anchor

A business that connects Stellar to traditional money.

Ramp

A way to move between cash or bank money and digital assets (on-ramp and off-ramp).

Operation

A single action inside a Stellar transaction, such as a payment.

Stroop

One ten-millionth of an XLM.

Stablecoin

A digital token designed to keep a steady value, such as one U.S. dollar.

Company and project sources describe their own products; we cite them for what the products do, not as endorsements. Last reviewed October 19, 2026.

• Lumens (XLM) (opens in a new tab)Stellar documentation
• Stellar Consensus Protocol (opens in a new tab)Stellar documentation
• Operations and transactions (opens in a new tab)Stellar documentation
• Anchors (opens in a new tab)Stellar documentation
• MoneyGram ramps (opens in a new tab)Stellar documentation
• Smart contracts are live on Mainnet (opens in a new tab)Stellar Development Foundation
• Intro to Stellar (opens in a new tab)Stellar Development Foundation