UN Endorses Ripple and Stellar as Cornerstones of New Global Payments Network

• The United Nations Capital Development Fund has endorsed Ripple and Stellar for a new global payments network.

• Stellar continues its mission of financial inclusion by providing low-cost solutions for underserved regions.

The United Nations Capital Development Fund (UNCDF) has endorsed Ripple and Stellar as key players in a new global payments network. This was stated during a recent webinar where both companies are described as key components of the new system for global payments.

The UNCDF, which is a member of the United Nations Development Programme, aims to enhance people’s economic status through financial inclusion. This is because, through recognizing Ripple and Stellar, the UNCDF understands that blockchain is capable of revolutionizing the financial sector. The endorsement of both companies for their ability to process cross border transactions is an indicator of their potential in the future of the global financial system.

A New Era in Payments

The payment network that the UNCDF envisions is to be open, regulated, and connected. This system will allow for simple exchanges between people and companies from all parts of the globe, and of any currency. Both Ripple and Stellar have a long history of successful involvement in cross-border payments and that is why this initiative is suitable for them.

Ripple, which has been widely used for fast and efficient cross-border transactions, has been steadily increasing its presence in the market. Stellar, which is an organization that aims to integrate mainstream finance with digital assets, also has a crucial role in transactions across borders. Both companies have embedded innovation and scalability within their cultures, meaning they are well-placed to be part of a global network that seeks to increase access to financial services.

In line with its mission to streamline cross-border payments, Ripple has recently entered into a partnership with Mercado Bitcoin, one of the largest crypto exchanges in Brazil. This partnership intends to create a cross-border payment system that minimizes the time and expenses of transactions. The collaboration integrates Ripple’s blockchain solution to provide enhanced and quicker payment services and enable seamless cross-border transfer of funds for companies and people alike.

As Crypto News Flash earlier indicated, Ripple’s payment solution is currently expanding at a high rate, with more than 80 payout markets. This corresponds to 90% of the daily turnover in the FX market. In particular, it has registered a transaction of more than $50 billion in volume. 

Stellar’s Role in Cross-Border Payments

Stellar, which has been centred on financial inclusion, has further strengthened its mission of offering affordable financial services. The endorsement by the UNCDF is an acknowledgement of the company’s role in developing a better financial system. Stellar’s platform enables the swapping of digital assets across borders, thus, connecting the world of cryptocurrencies with conventional banking systems.

Stellar’s participation in the global payment network is in line with the company’s mission of helping people transact securely and at low cost, especially those who are currently unbanked. Notably, in 2023, MoneyGram announced another partnership with Stellar to launch USDC transfer services. This was to increase its coverage to other regions of the world, such as the United States, Canada, Kenya, and the Philippines.