Payments
Stellar (XLM)
XLMData: Coinbase · updated 9/6/2026, 1:02:40 PM
What Stellar does
- Enables fast, low-cost cross-border payments and currency conversion
- Supports issuing custom tokens (representing assets like currencies) on its ledger
- XLM pays small network fees required to submit transactions
- Is used by some payment companies and remittance-focused services
Risks to know
- Smaller developer ecosystem and dApp activity than general-purpose smart contract platforms like Ethereum
- Removed its original built-in inflation mechanism in 2019, a tokenomics change investors should be aware of
- Competes with many other networks targeting cross-border payments and remittances
- Adoption by large payment companies has grown but remains limited relative to traditional payment rails
Where to trade XLM
Top-rated exchanges by CompareCEX Score. Check the exchange's market list for XLM availability before depositing.
Frequently asked questions
Who founded Stellar?
Stellar was co-founded in 2014 by Jed McCaleb, who had also co-founded Ripple, along with Joyce Kim. It's developed with support from the nonprofit Stellar Development Foundation.
What is XLM used for?
XLM is used to pay the small transaction fees required to submit operations on the Stellar network, and it can also serve as a bridge asset when converting between different currencies issued on the ledger.
How is Stellar different from Ripple/XRP?
Stellar and Ripple share a common early history through co-founder Jed McCaleb, and both target payments use cases, but they run on separate networks with different governance, token economics, and target users — Stellar has focused more on individuals and financial inclusion, while Ripple has focused more on enterprise/bank partnerships.
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