According to CoinMarketCap.com, Stellar, which trades using its native cryptocurrencytokens called lumens (XLM), took sixth place last week in the coveted list of cryptocurrencies with the largest market capitalization.
A variety of recent favorable events have aided it in achieving this position. Here’s a look at what propelled Stellar over prominent cryptocurrencies like as Litecoin, IOTA, and Tether.
Stellar’s Deal with TransferTo Bumps Price
Stellar received a significant boost late last week when an important agreement was revealed between Stellar and TransferTo, an international money transfer provider. Stellar is a well-known distributed ledger technology (DLT) platform that allows financial institutions to communicate through a cross-border transfer and payment mechanism. Stellar’s USP is its ability to instantly settle cross-border payments and execute transactions, which drastically reduces transaction costs and time delays.
TransferTo, which offers a cross-border mobile payments network for developing nations, will collaborate with Stellar to improve international money transfers and settlements by offering consumers low-cost, real-time, and secure transfers as part of the deal. Because both firms have a strong network of affiliate partners, financial institutions, and digital financial service providers such as payment gateways, the agreement will enable for the expansion of money transfer operations to more than 70 foreign locations worldwide. (See also, How to Find the Best Money Transfer Services.)
Coinbase, a renowned cryptocurrency exchange, stated two weeks ago that it is looking into adding Stellar to its trading platform, among other currencies like as Cardano (ADA), 0x (ZRX), Basic Attention Token (BAT), and Zcash (ZEC).This is intended to increase market activity in Stellar, bringing in additional players and liquidity.
Stellar Obtains Sharia Compliance
Stellar is the first DLT platform to get Sharia Compliance Certification for crypto payments and asset tokenization on July 17. The Shariyah Review Bureau (SRB), an international Sharia advisory agency licensed by the Central Bank of Bahrain, reviewed Stellar’s properties, features, and applications and issued the necessary guidelines to allow the use of Sharia compliant Stellar blockchain technology in Islamic financial institutions. The lumens cryptocurrency is likewise covered by the certificate.
The accreditation will allow Stellar to grow into new regions throughout the world where financial services need adherence to Islamic finance rules. Countries throughout the Middle East, such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, as well as those in South East Asia, such as Indonesia and Malaysia, may now use Stellar technology in Sharia-compliant product and service offerings.
Stellar, however, is not the only DLT platform that has achieved Sharia compliance. NOORCOIN received a Sharia Certificate from the World Sharia Advisory Committee in March, making it the first utility token to achieve Sharia compliance. According to a study provided in April by an internal Sharia adviser to fintech company Blossom Finance, Bitcoin was acknowledged as “usually legal” under Sharia law.
IBM Backs Stellar-based Stablecoin Project
Around the middle of July, IBM announced its support for the “Stronghold USD” stablecoin project, which is based on the Stellar network’s blockchain. Stronghold, Stellar’s cryptocurrency trading platform, is launching the stablecoin. The Federal Deposit Insurance Corporation (FDIC)-insured stablecoin, Stronghold USD, will be asset-backed at one-to-one US dollars each coin, with the requisite reserves maintained by a state-chartered trust business. The FDIC is a government organization that provides deposit protection to customers of commercial banks and savings institutions up to $250,000. (See also, Is Stablecoin the Solution to All Cryptocurrency Issues?)
The IBM cooperation will look into the application of Stronghold USD in blockchain business networks on the IBM Blockchain Platform.
“The digitalization of real-world assets utilizing blockchain has the potential to substantially revolutionize many types of financial transactions undertaken globally,” said Jesse Lund, global vice president of IBM Blockchain. “New fiat-backed instruments, such as Stronghold’s USD token, have the potential to improve the backbone of international banking operations and payments by allowing banks to integrate with public blockchain networks without requiring significant changes to their core banking and compliance infrastructure.” (For more information, see IBM Launches Stablecoin Backed By FDIC-Insured Banks.)
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