xrpl.bz
Stellar, a blockchain platform known for its innovative financial solutions, has forged a strategic partnership with Polkadot and its subsidiary network, Kusama. This collaboration is made possible through the creation of the Spacewalk bridge, a groundbreaking development that seamlessly links the two blockchain ecosystems.
Cryptocurrency On-Ramps Defined
A cryptocurrency on-ramp refers to an exchange or similar service where individuals can exchange fiat currency for cryptocurrencies.
Spacewalk Bridge's Purpose
The Spacewalk bridge, constructed by the recent winner of the Polkadot Pendulum parachain auction, is designed to connect decentralized finance (DeFi) applications with foreign exchange (forex) markets. This is particularly significant in emerging markets, where Stellar has established a presence since its inception in 2014 and has partnered with notable entities such as MoneyGram.
According to Torsten Schube, co-founder and CTO of Pendulum, the Spacewalk bridge is currently operational on the experimental Polkadot network, Kusama, with the Polkadot version expected to launch in one to two weeks.
Pendulum's Mission: Bridging Traditional Finance and DeFi
Pendulum's primary mission is to bridge the gap between traditional finance and DeFi, emphasizing the importance of stablecoins or fiat tokens rather than focusing solely on LUMEN, Stellar's native cryptocurrency.
Schube highlighted Stellar's excellent implementation of stablecoins and the ability to facilitate “on-ramps” and “off-ramps” for various fiat currencies globally. He stated, “I don't think you'll find any other network where so many different fiat currencies are tokenized.”
USDC will be the primary stablecoin passing through the Spacewalk bridge.
Regional Currency Stablecoins
Tomer Weller, Vice President of Product at the Stellar Development Foundation, revealed that a range of regional currency stablecoins will also be available. These include tokenized Argentine pesos, Brazilian reais, Kenyan shillings, several African stablecoins, and a couple of Euro-based coins.
Weller explained, “Essentially, every MoneyGram agent worldwide is an access point to the Stellar network. So, users can convert their Stellar assets into real money at over 300,000 locations worldwide. They can also access cryptocurrencies and, specifically, stablecoins, and transfer them in smaller denominations. We're gradually rolling this out to more and more countries.”
The collaboration between Stellar and Polkadot, facilitated by the Spacewalk bridge, promises to usher in a new era of accessibility for DeFi solutions and stablecoins in various global markets. This strategic partnership is set to reshape how users interact with cryptocurrencies and traditional financial systems, creating a more inclusive and versatile financial landscape.
