Stronghold: Stellar Lumens Gets First USD Anchor – Big Step Towards Adoption
One of the most important turning points for coins like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash is that they all have an easy on-ramp from fiat currencies into cryptocurrencies. This means that new investors who are looking for a way to get their hands on their first coins could buy any of these assets through an exchange like Coinbase or Abra, and even newer contenders like Square Cash App. But for many other digital assets, a direct fiat on-ramp or anchor is often nothing more than a dream. When it comes to Stellar and its Lumens asset though, that dream is becoming a reality all thanks to Stronghold.
Lumens, Meet Dollars
The announcement, which came out just today, claims that Stellar now has its very own USD to XLM on-ramp and off-ramp. This means that users can both buy and sell XLM for dollars.
As the Stellar network has unbelievably low transaction fees, this development could mean that cross-border or bank-to-bank transactions could see a major upgrade in both speed and affordability. XLM could also become an asset of choice for those wanting to cash out their cryptocurrency from various altcoins into dollars.
It is even conceivable that Lumens could pose a real threat to Ripple’s XRP in the race to see adoption by major banks as a way to move money around the world quickly and cheaply.
More On-Ramps on the Way?
Coinbase recently announced that they were exploring adding several new assets to their system which would allow for not only USD, but other fiat currency trading with stellar lumens. Following the announcement from Coinbase, Lumens saw a number of price jumps which have continued through the upward movement of the market in general over the last few days.
Currently, Stellar Lumens are trading for $0.27, and the project as a whole has a market cap of $5 billion.
The Need for Accessibility
The Stellar Network certainly has a lot going for it, but it’s not going to be an easy stroll into full on adoption. Currently, Steller Lumens are only supported by a handful of somewhat obscure wallets and only the Ledger hardware wallet, and most major multi-asset wallets such as Exodus and Jaxx do not support it.
But if the asset is added to Coinbase, that alone will give it a home in many millions of accounts and mobile apps through the popular Coinbase app and website. However, Coinbase is a custodial service, meaning that when you deposit assets into Coinbase, you generally do not have direct access to your private keys. Instead, one can only make a withdrawal through a request in the app.
It is conceivable, however, that once greater adoption occurs, multi-asset wallet makers and Stellar itself will likely come out with their support for or the development of entirely new user-friendly wallets for the asset.
Indeed if Stellar Lumens is able to get to separate fiat currency on and off ramps, it could spell for a bright future for the network, and for wider uses and appreciation for the increasingly popular Lumens asset.