Decentralized finance (DeFi) has the potential to revolutionize the financial sector by promoting greater inclusivity and accessibility. However, many underbanked and unbanked populations, particularly in developing regions, often find DeFi services economically unfeasible due to high transaction costs and the lack of necessary distribution channels for on and off-ramp services. These services are essential for converting fiat currencies to cryptocurrencies and vice versa.

Stellar, an open-source blockchain designed for payments and asset tokenization, presents a promising solution to these challenges. Stellar supports a broad range of in-demand assets, including USD Coin (USDC), on its platform. This support enables the use of these assets in smart contracts, which allow users to engage in more complex financial activities like staking, borrowing, lending, and yield farming.

The integration of smart contracts on Stellar is further enhanced by Soroban, Stellar’s smart contracts platform. Soroban benefits from a well-established network of ramps, assets, and market services. This includes partnerships with entities like MoneyGram International (MGI) and its agent network, new and existing ramps, various fiat-denominated assets, and innovative products like the Anchor Platform, which offers compatibility benefits through Stellar Ecosystem Proposals (SEPs).

The on and off-ramp facilities provided by Stellar offer significant advantages. They provide immediate access to existing infrastructure, eliminating the need to build new systems from scratch. These facilities enable expansion into new geographical markets, particularly reaching underserved individuals in developing countries who may not have access to traditional banking services. Stellar ranks second only to Bitcoin in physical on-ramp locations globally, highlighting its extensive reach.

Stellar’s infrastructure is crucial for addressing unmet needs within the global financial ecosystem. Soroban democratizes access to DeFi, enabling users to engage with DeFi services and applications globally without needing a bank account. This is particularly beneficial for individuals in regions where financial services are either too expensive or physically inaccessible.

From a development perspective, Stellar offers opportunities for builders and entrepreneurs to access these underserved markets. The network’s coverage allows for targeted solutions, such as providing affordable financing options to small business owners in countries with high borrowing costs. Additionally, the reliability and uptime of the Stellar network ensure uninterrupted services, maintaining user trust and retention.

Soroban’s scalability ensures the ledger can handle increased activity as transaction volumes grow without compromising service quality. This scalability is crucial for developers and businesses contemplating substantial investments in blockchain integration, ensuring their efforts are sustainable in the long term.

Stellar has significantly contributed to bootstrapping the ecosystem, with over $15 million of Soroban projects funded through the Stellar Community Fund. The Stellar Development Foundation has also allocated a $100 million adoption fund to support and accelerate the growth of the Soroban platform. This substantial investment aims to foster innovation and development, encouraging a wide range of decentralized applications (DApps) to leverage Stellar’s smart contract capabilities, promoting greater financial inclusivity and accessibility.

Currently, 249 projects are actively developing on Soroban, with 21 already launched on the mainnet. These include the lending and borrowing protocol Blend, the automated market maker Phoenix, and the oracle service Band Protocol. This growing ecosystem highlights robust development and adoption within the Stellar network, showcasing a variety of innovative financial applications.

Platforms like Stellar, bolstered by Soroban, offer robust, scalable, and inclusive pathways to DeFi, capable of reaching global audiences and fulfilling the diverse needs of various user groups. Stellar’s infrastructure enhances financial inclusivity while supporting the development of a more equitable and efficient global financial ecosystem. These strategies underscore the transformative potential of blockchain technology to bridge financial divides and empower economic participation worldwide.