XLM (Stellar Lumens) is the native cryptocurrency of the Stellar network, a blockchain built specifically for cross-border payments and financial inclusion. Unlike general-purpose blockchains, Stellar was designed from the ground up to move money across borders quickly and cheaply. Network fees are 0.00001 XLM (a fraction of a cent), and transactions settle in 5 seconds.
The Stellar network uses a consensus protocol called SCP (Stellar Consensus Protocol) that allows transactions to settle in 5 seconds without the energy-intensive mining used by Bitcoin. XLM serves two purposes on the network: it is the native token used to pay transaction fees (0.00001 XLM per transaction, currently a fraction of a cent), and it acts as a bridge currency for exchanging between different assets on the Stellar DEX (decentralized exchange). Every Stellar account must hold a minimum of 1 XLM as a reserve. The network can process approximately 1,000 transactions per second.
Stellar was co-founded by Jed McCaleb (also co-founder of Ripple) in 2014 with the explicit mission of connecting the world's financial systems. The Stellar Development Foundation, a nonprofit, oversees the protocol. Major partnerships include MoneyGram (which uses Stellar for USDC-based remittances in 180+ countries), Circle (USDC is natively issued on Stellar), and numerous anchors (on/off-ramps) in developing countries. Stellar's architecture is uniquely suited to remittances: the built-in DEX allows seamless currency conversion, and the anchor system connects the blockchain to local banking rails.
There are two ways to send money via Stellar: using XLM directly or using USDC on Stellar. Sending XLM directly means the recipient receives XLM and must sell it for local currency — exposing both parties to XLM price volatility during the transfer. Sending USDC on Stellar eliminates this volatility since USDC is pegged to $1. For remittances, USDC on Stellar is generally preferred because neither party bears cryptocurrency price risk. The network fee is the same either way (0.00001 XLM). RemitRoutes calculates costs for USDC-on-Stellar paths, which offer the price stability of stablecoins combined with Stellar's near-zero fees.
The process for sending money via Stellar: buy USDC on an exchange that supports Stellar withdrawals (Coinbase, Kraken), withdraw the USDC to the recipient's Stellar address (memo field is critical — do not forget it), and the recipient sells the USDC on a local exchange that supports Stellar deposits. The transfer itself takes 5 seconds and costs under $0.01. The total cost, including exchange fees on both ends, is typically $1-5 for any transfer amount. Stellar's main limitation is that not all off-ramp exchanges support Stellar USDC deposits — always verify before sending.
XLM is used to pay transaction fees on the Stellar network, act as a bridge currency on the Stellar DEX, and meet the minimum account reserve requirement (1 XLM). It can also be sent directly as a value transfer, though USDC on Stellar is preferred for remittances due to price stability.
The network fee is 0.00001 XLM (a fraction of a cent). Total remittance cost including exchange on-ramp and off-ramp fees is typically $1-5 regardless of the transfer amount — among the cheapest options available.
Stellar has lower network fees ($0.00001 vs ~$1) and was purpose-built for payments. Tron has deeper USDT liquidity. The best choice depends on which stablecoin (USDC vs USDT) has better support at the recipient's local exchange. RemitRoutes compares both.
A memo is an additional field required when sending to exchange deposit addresses on Stellar. It identifies which account should be credited. Forgetting the memo can result in lost funds. Always include the memo provided by the recipient's exchange.
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