Stellar (XLM)

The network’s native asset, XLM, plays several roles. It is used to pay small transaction fees, helps prevent spam by requiring minimum account balances, and can serve as a bridge asset when converting between currencies or tokens on the ledger. Stellar also includes a built-in decentralised exchange, allowing issued assets to be traded directly at the protocol level rather than relying entirely on external venues.

A key part of the Stellar model is the use of anchors. These are regulated or trusted entities that accept deposits, such as fiat currency, and issue corresponding digital representations on Stellar. This structure allows the network to support remittances, stablecoin-style assets, business payments, and tokenised real-world assets while still interacting with traditional financial systems.

Stellar uses the Stellar Consensus Protocol, a federated Byzantine agreement system in which validators choose the parties they trust for consensus. This design enables fast settlement, with transactions typically finalising in seconds. The ecosystem has also expanded into smart contracts through Soroban, a platform intended to support more advanced applications. Stellar’s position in crypto is therefore centred on payments infrastructure, asset issuance, and financial access rather than speculative mining or high-fee settlement.