Stellar (XLM) Guide: Cross-Border Payments, Anchors, and Price Outlook

Stellar (XLM) has positioned itself as a leading blockchain network to facilitate fast and cost-effective cross-border payments. Different from other currencies due to its consensus mechanism and strategic partnerships, Stellar is changing financial transactions around the globe.

In this blog post, I will explore Stellar’s role in global payments, its anchor system, and its price outlook for the coming years. Furthermore, I will also explain how to Trade XLM on BYDFi for better ROI.

Let’s start!

Cross-border transactions are a key application of Stellar, making it a strong competitor to traditional financial systems. Compared to traditional banking systems, which can be characterized by high fees and slow processing speed, Stellar makes the transfer almost instant and very cheap.

Key Features:

• Low Transaction Fees: Stellar transactions cost a fraction of a cent, making it ideal for remittances and micro-payments.
• Fast Settlements: Transactions are completed in seconds, compared to the days required by traditional banks.
• Decentralized Exchange (DEX): Stellar allows users to trade assets directly on its blockchain, eliminating intermediaries.

Traditional financial systems often involve the use of intermediaries, such as payment processors and banks, which can cause delays and incur additional fees. Stellar removes these inefficiencies by offering a decentralized network in which the transactions are conducted directly between the parties. It is especially helpful to people in developing countries who do not have access to traditional banking services.

In addition, the tokenization of assets feature in Stellar enables users to transfer and receive various currencies conveniently. Sending USD, EUR, or even local currencies, Stellar will make sure that the money is exchanged at the most favorable rate because its decentralized exchange is built in.

Anchors are trusted entities that issue assets on the Stellar network, acting as bridges between fiat currencies and digital assets. They play a crucial role in ensuring liquidity and stability.

How Anchors Work:

1. Deposit & Issuance: Users deposit fiat currency with an anchor, which then issues a digital equivalent on Stellar.
2. Redemption: Users can redeem their digital assets for fiat currency through the anchor.
3. Interoperability: Anchors facilitate seamless currency exchanges, making Stellar a global financial hub.

Several payment providers and financial institutions have integrated the Stellar anchor system to enhance their services. As an example, MoneyGram has already collaborated with Stellar to facilitate instant conversions of fiat to crypto, enabling users to transport money internationally without relying on the conventional banking system.

Further, Circle, the creator of USDC has used the network of Stellar to enable transactions of the stablecoin. The integration will make Stellar more useful and therefore a favorite among businesses and individuals that want to use it to access efficient financial solutions.

Stellar’s price has seen fluctuations, but analysts remain optimistic about its future. As of 2025, XLM is trading around $0.27, with predictions suggesting a potential rise to $1.29 in bullish scenarios.

Price Predictions:

• 2025: Expected range between $0.65 – $1.29, with an average of $0.97.
• 2026: Potential high of $1.76, with a floor near $0.86.
• 2030: Optimistic projections suggest Stellar could reach $6.19, while conservative estimates place it around $3.01.

Factors Influencing XLM’s Price:

• Institutional Adoption: Partnerships with major financial players boost credibility.
• Market Trends: Altcoin seasons and Bitcoin movements impact Stellar’s valuation.
• Regulatory Developments: Favorable regulations could accelerate adoption.

BYDFi is a cryptocurrency exchange ranked by Forbes as one of the world’s top 10 crypto exchanges in 2023. It supports trading Stellar (XLM) along with 700 digital assets. It offers multiple trading options, including spot trading, derivatives trading, leverage trading, and copy trading.

Here are some easy steps to Trade XLM on BYDFi:

1. Register an Account – Sign up on BYDFi and complete any necessary KYC verification.
2. Deposit Funds – Add USDT or other supported cryptocurrencies to your account.
3. Choose a Trading Option – Select spot trading for direct purchases or derivatives trading for leveraged positions.
4. Analyze Market Trends – Use BYDFi’s advanced charting tools to assess XLM’s price movements.
5. Execute Your Trade – Place buy or sell orders based on your strategy.
6. Monitor & Manage – Track your portfolio and adjust positions as needed.

BYDFi is known for its low trading fees and user-friendly interface, making it a solid choice for both beginners and experienced traders.

The future success of Stellar will be determined by how relevant it can remain in the new financial world order. The use of Stellar is prone to rise as more institutions realize the advantages of blockchain technology. Moreover, the development of smart contracts and decentralized finance (DeFi) may also provide additional opportunities to increase the functionality of Stellar and become a central figure in the digital economy.

Stellar (XLM) remains to restructure cross-border payments using the effective blockchain network and anchor system. Its price prospectus is also bright, as its adoption rises, thus being an attractive alternative to investors and financial institutions. Stellar has a promising future, whether you want to use it as a speedy and affordable payment method or as an investment option.