Stellar's Network Becomes Go-To Solution for Nonprofits and NGOs
Nonprofits and NGOs are increasingly turning to Stellar's network for their aid distributions due to its ability to send small cash payments to thousands of people quickly, cheaply, and with a full record of where the money went. This is particularly beneficial for recipients who do not have access to bank accounts or cards, as they can receive USDC, a dollar-backed stablecoin, on their phones and cash it out locally.
The UN Development Programme (UNDP) has signed an agreement with Stellar to turn its payments into a standing tool for its country offices through the end of 2027. This marks a significant shift from testing to building the rules, onboarding, and safeguards that country offices need to use the tool routinely.
The aid groups are trying to solve three recurring problems: high costs, limited access to bank accounts, and tracking who received the money. Stellar's network offers low fees of around 1 US cent per 10,000 transactions and stable value, as funds land in a hard-currency stablecoin that holds its value until the recipient decides to cash out.
The UNHCR has already achieved significant results on Stellar, sending $4.6 million since December 2022, mostly in Ukraine, with the rest going to Argentina. The UNDP's pilots have shown promising results, including a 90% reduction in estimated distribution costs in Aleppo, Syria.