Stellar Lumens (XLM) is the native cryptocurrency of the Stellar network, a decentralised blockchain platform designed to facilitate fast, low-cost cross-border transactions. Launched in 2014 by Jed McCaleb, co-founder of
Ripple (XRP), and the Stellar Development Foundation, the network aims to connect financial systems worldwide and enable seamless transfers of digital and traditional currencies.
The Stellar network functions as a bridge for exchanging currencies, allowing users to send money in one currency and have it received in another. This is achieved using Lumens (XLM) as an intermediary asset to facilitate liquidity and reduce transaction friction. Transactions on the network are fast, typically settling within seconds, and the fees are minimal, making it an attractive solution for remittances and microtransactions.
Unlike many cryptocurrencies, Stellar focuses on fostering partnerships with financial institutions, governments, and businesses to create real-world use cases. Organisations such as IBM and MoneyGram have integrated Stellar into their systems to improve payment infrastructure. Overall, Stellar Lumens (XLM) plays a key role in driving the network’s mission to make global financial systems more accessible and efficient.