In order to fully understand how Stellar Lumens came to be, it is important to understand the crypto journey of Jed McCaleb who founded the Stellar Development Foundation. It all started in 2011 when McCaleb sold the Mt. Gox exchange and decided to focus on creating a new cryptocurrency.
McCaleb came up with the “ripple protocol” whose intention was to come up with a cryptocurrency that could be used for transaction purposes on the blockchain network. This led to the formation of Ripple and its digital token also called Ripple (XRP). However, McCaleb’s role at Ripple came to an end in 2013 when he decided to pursue other ventures. He used the knowledge and skills earned during his tenure at Ripple to spearhead the creation of the Stellar Development Foundation which created the XLM and the Stellar Consensus Protocol.
Securing strategic partnerships
Over the years, Stellar has worked on numerous developments that have helped it to secure a lead over other digital currencies such as Tether (USDT), IOTA (IOT) and Litecoin (LTC). Stellar has engaged in some of the key partnerships that as part of its plan to facilitate cross-border payments that can be used by financial institutions. It particularly appeals to the financial sector because it is a solution that can deliver cross-border payments at significantly lower costs and also at a faster rate compared to old methods.
Its unique approach and appeal to cross-border payments is one of the reasons why Stellar Lumens has gained so much popularity and also achieved significant growth. One of Stellar’s latest key partnerships includes the recently announced deal with an international money transfer firm called TransferTo. As per the deal, Stellar will work towards taking international payments to a whole new level through secure, real-time and low-cost transfers.
Both TransferTo and Stellar have strong networks that consist of financial institutions, affiliate partners and digital service providers such as payment gateways. The partnership will work towards making money transfer operations available in more than 70 global locations.
Less than a month ago, Coinbase which is one of the leading cryptocurrency exchanges announced that it plans to include Stellar Lumens to its trading platform. This is great news because it means that the cryptocurrency will become more accessible while also earning more trust in the crypto market and this could encourage more adoption. Another development recently announced development was announced revealing that Stellar’s platform has been chosen as the go-to platform for IBM’s stablecoin which is currently in development. This is also expected to boost Stellar’s credibility as an institution.
Stellar also announced on July 17 that it secured another first after it became the first decentralized ledger technology platform to achieve Sharia Compliance for asset tokenization and digital currency payments. The review for the certification was carried out by the Central Bank of Bahrain’s licensed Shariyah Review Bureau (SRB).