Axelar Network and Stellar Unite: Enabling Cross-Chain Retail Payments for Global Flows
Axelar and Stellar’s Partnership: A Cross-Chain Retail Payment Revolution
Axelar Network, the leading omnichain interoperability protocol, has partnered with Stellar ($XLM) to enable cross-chain retail payments, routing transactions from any blockchain into Stellar’s efficient settlement rails. Announced in early 2025, this collaboration leverages Axelar’s GMP (General Message Passing) and CCIP (Cross-Chain Interoperability Protocol) to connect over 70 chains, allowing users to pay with assets from Ethereum, Solana, or Polygon directly on Stellar’s network. For crypto newcomers, this means sending USDC from Solana to a merchant on Stellar, settled in 5 seconds for pennies, without bridges or wrappers. As Axelar’s blog outlines, the flow is simple: Initiate payment on any chain, Axelar routes it to Stellar, and fiat on/off-ramps complete the transaction. With Stellar’s $4.2B quarterly volumes, this unlocks faster, cheaper asset flows for the $831B remittance market.
How It Works: Axelar’s Layer Routes to Stellar’s Rails
Axelar acts as the “universal translator.” Users express intents (e.g., “Pay $10 USDC from Ethereum to Stellar merchant”) via apps. Solvers compete to execute, using Axelar’s DVNs (Decentralized Verifier Networks) for secure validation. On Stellar, Soroban smart contracts handle settlement, pulling liquidity from DEXs like Soroswap. Specifically, this supports stablecoins like PYUSD or EURCV, ensuring compliance with MiCA and GENIUS Act. As the Stablecoin Standard article details, Axelar routes payments non-custodially, prioritizing speed and security. For merchants, it’s plug-and-play: Accept cross-chain crypto, settle in fiat via MoneyGram’s 400K+ locations. Early pilots show 30% faster settlements and 80% cost savings vs. SWIFT. Thus, a Filipino worker pays a U.S. freelancer in ETH, routed to Stellar, cashed out instantly.
The Impact: Liquidity Surge and Retail DeFi Boom
This partnership expands Stellar’s ecosystem, connecting its 10M+ accounts to Axelar’s 20+ chains for multichain liquidity. RWAs like BENJI ($849M) now flow to Solana pools, boosting TVL from $144M to potential $1B. For retail, remittances become borderless: Send from Polygon, receive on Stellar in minutes. As Axelar’s ecosystem grows (50+ dApps), Stellar benefits from unified volumes, $XLM up 4% to $0.32 post-news. Institutions gain compliant access; users get one-click payments. As Disruption Banking reports, Axelar’s Cobalt upgrade hardens AXL tokenomics for sustainable interop.
Stellar’s Interop Horizon: From Payments to Programmable Retail
In short, Axelar and Stellar aren’t just linking chains, they’re redefining retail payments. Faster flows. Cheaper access. Global scale. For $XLM holders, it’s momentum; newcomers, seamless entry. Platforms like Lumexo trade $XLM with low fees. As Q4 2025 pilots launch, watch liquidity explode. Blockchain isn’t siloed. It’s seamless.