Stellar (XLM) continues to buck trends showing promise with a moderate jump in price today. XLM has been catalyzed by the news that it will be joining forces with Chain in the formation of Interstellar. Interstellar will create tools, products, and services to make it easier to use and build on Stellar, especially for enterprises and institutions.
The 6th largest coin has traded in a tighter and tighter range since January, without making lower lows like most of its counterparts. Both the growth in users and increasing economic activity suggests a trend of new entrants using the Stellar blockchain. This is in stark contrast to most other coins in the market. XLM also appears on the cusp of a Coinbase listing, and is working closely with several prominent partners.
And as we mentioned previously, the company has a nice partnership with IBM that will compete with the likes of Ripple’s XRapid. The deal will promote the Blockchain World Wire, a financial rail that can easily clear and settle cross-border payments.
“Sending money across borders today requires a series of intermediaries for both clearing and settlement, each adding time and cost to the process. With IBM Blockchain World Wire, clearing and settlement with finality happens in near real-time. The solution uses digital assets to settle transactions – serving as an agreed-upon store of value exchanged between parties – as well as integrating payment instruction messages. It all means funds can now be transferred at a fraction of the cost and time of traditional correspondent banking.”
In addition, the two companies announced they will also begin testing a so-called stablecoin, or “crypto dollar,” that runs on the Stellar blockchain network. The stablecoin is called Stronghold USD, after the fintech startup Stronghold that is behind the project. A stablecoin would help cut down on exchange costs by employing a stablecoin as a proxy for the fiat currency reducing the risk of getting a worse exchange rate when the money is converted back into fiat currency as the prices of digital currencies like Stellar Lumens as well as Bitcoin can often swing wildly.