Stellar Anchors: Currency Gateways Between Fiat and Blockchain! ⚓️🏦
Anchors are a critically important element of the Stellar ecosystem by July 2025. They are financial institutions (banks, money transfer companies) that issue tokens representing fiat currencies (e.g., US dollars, euros, local currencies) on Stellar. They act as:
Bridge: Allow users to deposit fiat money and receive their tokenized equivalents on Stellar, and then redeem them back to fiat.
Liquidity Providers: Support liquidity between fiat and crypto assets.
Regulators: Ensure KYC/AML compliance for fiat operations. This mechanism allows Stellar to seamlessly integrate with traditional financial systems, making it practical for real-world use cases.