Stellar allows a user to create a redeemable, tradable representation of any asset. You can accept a deposit of a dollar, a Euro, a bitcoin, a bushel of corn—whatever—and easily issue a 1:1 digital token in return.
This is one of Stellar’s most powerful features. It means that full-blown markets can exist completely within the network, so all asset types can take advantage of Stellar’s global reach, near instant transaction times, and ultra-low costs.
How it works
Asset issuance on Stellar is self-serve, and you don’t need to code any complicated smart contracts. Just four simple operations:
The process is flexible, so whether you want to issue an asset that everyone in the world can buy and sell immediately or you want strict access controls and KYC standards, you’ll find solutions tailored to your needs. And once your asset is issued, it can be swapped immediately with any other Stellar asset. You get global reach in a single integration.
Assets already on Stellar
There are dozens of tethered assets already on Stellar. There are tokens redeemable1 for Dollars, for Yuan, for Euros, for Bitcoin.
All the assets on Stellar are interoperable, via the network’s order books. All can move globally in five seconds, for a fraction of a penny. The network’s ability to support arbitrary fiat tokens drove IBM’s decision to build their World Wire marketplace on Stellar.
Solutions for complex assets issued on Stellar
If you’re a bank, a corporation, or a municipality, it’s just a fact that you have to know who holds your credit, your stock, or your bonds. Stellar supports these use cases, too.
When you issue an asset, you can set important features as flags. You don’t need any custom code. You can impose KYC requirements before a person can trade your token, so you can see who your customers are and confirm identity before anyone interacts with your token. You can also control access using multi-signature accounts, or by creating time-locked escrows.
Transparency and control are vital for financial assets to comply with regulations, and unlike other blockchains, Stellar allows you to handle them at the lowest level.
On Stellar, trading is native to the platform. Most blockchains only store your balances. Stellar also stores bids and asks against your balances.