Guide To Stellar Assets-Issuing, Anchoring & Beyond

Transferring money, especially across borders, can be slow, expensive, and confusing due to the involvement of multiple intermediaries, fluctuating exchange rates, and regulatory issues. This is where blockchain technology can offer significant improvements. It provides a decentralized ledger that is secure, transparent, and immutable. Now, Stellar assets are digital shortcuts built on this special blockchain system called Stellar. These shortcuts represent real-world things you might already know, like cash, stocks, or even points you earn at your favorite store. These assets can be transferred quickly and cheaply across the Stellar network. This translates to frictionless cross-border payments with near-instantaneous settlement and minimal transaction costs. This capability makes Stellar Asset a convenient option for businesses in the finance industry looking to improve their systems. Beyond payments, businesses can use Stellar Assets to create innovative loyalty programs, fractional ownership models, auditable record-keeping systems, and more.

This blog dives deeper into the technical aspects of Stellar Assets, exploring their advantages for businesses and showcasing real-world applications. So, prepare yourself to gain insights into how Stellar Assets are competing effectively in the global marketplace.

What Is A Stellar Asset?

Stellar stands out as a leading platform for exchanging digital assets effortlessly. It enhances the capabilities of decentralized finance by making it easy to create, issue, and trade various digital tokens.

Key to understanding Stellar is its unique digital assets each of which are defined by a code and its issuer. This means different organizations can issue tokens representing the same asset while promoting diversity and inclusivity. For example, multiple entities can introduce their version of a USD token to expand financial possibilities. Additionally, stellar improves cross-asset transactions and makes the process simple and cost-effective for transferring value across borders. 

Stellar has a native digital asset called Lumens (XLM), which supports a wide range of tokenized assets. This versatility underscores Stellar’s commitment to accessibility and interoperability.

A Stellar Asset is a digital representation of a real-world valuable item stored and managed on the Stellar blockchain network. Here’s a breakdown of the key points:

  • Digital Representation: It’s not the actual asset itself, but a digital token that stands in for it.
  • Real-World Value: These tokens represent things like currencies (USD, EUR, etc.), securities (stocks, bonds), loyalty points, or even physical assets (like gold) with a digital equivalent.
  • Stellar Blockchain: Stellar is a decentralized network that facilitates fast and secure transactions. Assets are issued and managed on this platform.

For example, you have a stock certificate that represents your ownership of a company share, and it can be on physical paper. Similar to this, a Stellar Asset is a digital certificate that verifies ownership of something valuable, but instead of physical paper, it exists securely on the Stellar blockchain.

Types Of Assets On Stellar

In the Stellar blockchain network, there are different forms of assets with their own unique role and purpose. Understanding these asset types opens up a world of opportunities for financial creativity and inclusion.

1. Native Assets: 

Lumens (XLM) are fundamental to the Stellar network, as mentioned above. They function as its core currency, facilitating seamless transactions and serving as a bridge between various forms of money.

2. Tokens: 

Tokens on Stellar represent a wide range of assets, from popular cryptocurrencies like Bitcoin and Ether to traditional currencies like dollars and pesos. They can also represent other valuable items like shares, bonds, and unique digital items known as non-fungible tokens (NFTs). These tokens provide a flexible way to represent assets on the blockchain.

3. Stablecoins: 

Stablecoins are an important part of the Stellar ecosystem. These digital tokens are designed to maintain a stable value by being tied to assets like fiat currencies or commodities. There are two main types:

  1. Reserve-backed stablecoins: These stablecoins are backed by reserves of assets, ensuring that they can be redeemed for their underlying value.
  2. Algorithmic stablecoins: Instead of being backed by assets, algorithmic stablecoins use mathematical algorithms to control their supply and stabilize their value.

There are several stablecoins that are accessible within the Stellar network. Here are some examples:

  • USDC: This is a regulated stablecoin pegged to the US dollar, utilizing the efficiency and broad accessibility of the Stellar network.
  • EURC: Representing the euro, EURC operates as a stablecoin within the Stellar ecosystem.
  • GYEN: Issued by GMO Trust, GYEN is the inaugural regulated stablecoin linked to the Japanese yen on Stellar.
  • ZUSD: Another stablecoin from GMO Trust, ZUSD is regulated and tied to the US dollar on Stellar.
  • AUDD: AUDD stands for a digital Australian dollar stablecoin that is fully backed by collateral.
  • RWF: Clickpesa issues RWF, a stablecoin representing the Rwandan franc.
  • ARST: ARST, backed by the Argentine Peso, is a stablecoin available on Stellar.
  • MBRL: Mercado Bitcoin introduces MBRL, a stablecoin pegged to the Brazilian Real.
  • KES: Clickpesa also offers KES, a stablecoin backed by the Kenyan Shilling.

Each assets on Stellar blockchain is identified by a unique code and issuer that allows multiple organizations to issue credits for the same asset. This system promotes diversity and flexibility in the Stellar ecosystem and enables different assets to work together seamlessly.

3 Key Components Of Stellar Assets

Here are the key pillars that support the versatility and functionality of Stellar assets.

1. Asset Code And Issuer Identification:

Stellar assets are characterized by two crucial characteristics: the asset code and the issuer. The asset code acts as a unique identifier for each asset, while the issuer is the entity responsible for its creation. This system allows multiple organizations to issue credits for the same asset. For example, various entities can offer USD tokens on Stellar and each token is identified by its unique asset code and issuer. This setup simplifies the creation and exchange of a wide range of assets on the Stellar network, including cryptocurrencies, fiat currencies, and other valuable tokens.

2. Establishing Trustlines:

Trustlines are integral to managing assets on the Stellar network. These lines are added to a user’s Stellar account enabling the holding and specification of desired token amounts. Additionally, trustlines act as a safeguard against unwanted assets and ensure that users only engage with trusted counterparts. Before participating in any asset-related activities on the Stellar network, such as trading or receiving, users must establish trustlines with the issuing accounts of the assets.

3. Utilizing Lumens (XLM):

Lumens is the native currency of the Stellar network and holds special significance within its ecosystem. They serve as the network’s backbone and are indispensable for facilitating various transactions and upholding network integrity. Every Stellar account is required to hold a small number of lumens, which ensures a minimal barrier to entry and prevents misuse of the network. Lumens is important in covering transaction fees, rent, and minimum balance requirements. Additionally, it serves as a medium of exchange between different assets, enhances liquidity, and enables seamless asset movement across the network.

How To Issue Assets On Stellar?

To issue assets on stellar, it is important to establish the proper infrastructure. A crucial step in this process involves creating separate accounts for issuing and distributing your assets. 

The Stellar network operates through accounts, which function as digital wallets for holding and managing various assets. To begin with asset issuance, you’ll need to create two distinct accounts:

Step 1: Issuing Account: 

This functions as the hub where your digital assets are generated, similar to a “mint.” This is where you’ll hold the initial supply of your asset and initiate transactions related to its issuance and management.

Step 2: Distribution Account (Optional, But Highly Recommended): 

While not strictly mandatory, a dedicated distribution account offers several advantages. This account will act as the primary source for distributing your asset to other users on the Stellar network. Additionally, this account receives the assets from the issuing account and disperses them to other accounts.

The Importance Of Separate Accounts For Issuing And Distribution

In managing assets within the Stellar network, maintaining separate accounts for issuing and distribution serves as a strategic imperative, offering a combination of structured processes and distinct advantages:

1. Enhanced Security Measures: 

Combining issuance and distribution functions within a single account may seem practical, but it exposes assets to vulnerabilities. Malicious elements could exploit this setup and risk the asset’s integrity while increasing off-chain liabilities. By creating separate accounts, the risk of asset compromise is significantly eliminated. In case of malicious activity, the issuer can swiftly freeze the asset balance tied to the distribution account, halting any felonious actions.

2. Streamlined Auditability and Bookkeeping: 

Using a dedicated distribution account facilitates efficient tracking and management of assets. This promotes transparency and accountability in transactions. Maintaining a consistent inventory of assets in a separate account simplifies auditing processes and reduces the risk of errors or discrepancies in asset management.

3. Flexibility for Innovation: 

Decoupling ecosystem standards from issuance protocols enables participants to explore new concepts and strategies without compromising established protocols. This adaptability promotes creativity and diversity within the Stellar ecosystem and drives ongoing growth and development.

Moving on, followed by these account creation, you need to define and issue assets along with establishing trustline:

Step 3: Asset Definition:

An assets on the Stellar blockchain network is characterized by two essential aspects: firstly, the asset code, which acts as a brief alphanumeric label that typically consists of 4 to 12 characters and serves to uniquely identify the asset across the network. Secondly, the total supply, which signifies the predetermined quantity of the asset intended for circulation and establishes the maximum amount that can ever exist.

Step 4: Issuing The Asset:

Initiating the issuance of an assets on the Stellar blockchain network involves a structured procedure. This begins with a payment transaction initiated from the issuing account to the distribution account, or an alternative designated recipient if a separate distribution account is not utilized.

Within this transaction, specific details such as the asset code, the initial issuance amount (which may correspond to the total supply if not immediately distributed), and the identification of the issuing account as the sender – must be outlined. This ensures a transparent and efficient asset issuance process while maintaining clarity and integrity within the Stellar ecosystem.

Step 5: Establish A Trustline:

This is a mechanism that enables the distribution account to hold and trade the assets and signifies trust in the issuing account and its assets. This can be done using trustlines through Stellar wallets.

At this stage, users who want to hold your assets on the Stellar blockchain network need to establish a trustline with your issuing account. This authorizes your account to deduct a small amount of Lumens (XLM) from their account to cover transaction fees for your asset, and again, users can use their stellar wallets to do this.

Step 6: Execute The Asset Transfer: 

In this step of managing assets on the Stellar network, the issuing account takes the lead by initiating a payment using the newly created asset to the designated distribution account. This step marks the beginning of the issuance process, allowing the issuing account to generate additional tokens by making payments to either the distribution account or any other account with the necessary trustline.

Following the issuance, the next task is to provide comprehensive information about the asset to relevant parties, including exchanges, wallets, and potential token holders. This is achieved through the creation and sharing of a stellar.toml file, an essential document that communicates key details about the asset to the broader ecosystem.

  • By providing comprehensive information in stellar.toml file, asset issuers can get numerous benefits, including trust building, increasing the asset’s visibility, securing listings on various exchanges, and enhancing the likelihood of project success.
  • Stellar.toml files serve as important resources used by various entities, such as the Stellar ticker, trading platforms like Stellarport and StellarX, and wallets like Lobstr and Solar
  • Additionally, ecosystem integrations that facilitate interoperability rely on the information contained within the stellar.toml file, which is formatted in TOML (configuration format accessible to both humans and machines.)

Essential Components Of The stellar.toml File

The stellar.toml file encompasses four types of essential information, each serving a distinct purpose:

  1. General Information: This section includes details such as accounts associated with the asset and the location of resources supporting Stellar integration.
  2. Organization Documentation: This is basic organizational information that includes the official website link, legal name, company logo URL, physical address, and email contact. It is provided to establish credibility and trust.
  3. Point of Contact Documentation: This includes details about primary contact points within the organization, including name, email address, and social media handles. They are outlined to facilitate communication.
  4. Currency Documentation: Information pertaining to the asset itself, such as asset code, issuing account’s public key, asset type, anchor details, token description, redemption instructions, and token image URL, is crucial for stakeholders to understand its characteristics and utility.

By creating and sharing a comprehensive stellar.toml file, asset issuers can effectively communicate the value proposition of their asset and build trust among stakeholders within the Stellar ecosystem.

Step 7: Publish Your stellar.toml

In this essential phase of managing your assets on the Stellar network, the focus shifts to sharing your stellar.toml file which is a crucial step in making your asset easily accessible to everyone.

To successfully share your stellar.toml file, follow these simple steps:

  1. File Placement: Put the complete file on your chosen website at a specific location: https://YOUR_DOMAIN/.well-known/stellar.toml. Don’t worry, YOUR_DOMAIN could be anything from a website you own to even just your computer. This location ensures that others can easily find and access information about your asset.
  2. Allow Access: Make sure other websites can access your stellar.toml file. This might sound complicated, but it just means allowing other websites to see the information. You can do this by using a browser extension or asking someone who knows how to help. Also, ensure that when someone asks for your file, the response includes a message saying they can have it.
  3. Make It Easy to Read: Ask your browser to show the information in the file without needing to download it. This way, when someone visits the link to your file, they can immediately see what’s inside without any extra steps.

In addition to these steps, it’s important to connect your asset to a specific website using the set_options feature. This makes it clear where your asset comes from and makes it easier for people to find it.

By following these simple steps, you’re not just making your asset available but also making it easier for everyone to discover and understand. 

Step 8: Control Access To An Asset

In this important phase of handling your assets on the Stellar blockchain network, the focus shifts to deciding who can use your asset, keeping it safe, and following any rules or laws that apply. While Stellar makes it easy for anyone to use your asset, you can add extra controls to make sure it’s used safely and responsibly.

To control who can use your asset, you can use special settings called flags on your account. These flags help you set rules for how your asset can be used and who can use it.

1. Require Approval:

You can decide that anyone who wants to use your asset must get your approval first. This means they have to ask for permission before they can start using it. You can choose to give them full permission to do anything with your asset (like making payments or receiving them) or limited permission, where they can only manage existing transactions without making new ones.

2. Control Access Changes:

You also have the power to change your mind about who can use your assets. If someone is no longer allowed to use it, you can revoke their permission at any time. This freezes their access to your asset and stops them from doing anything with it until you say otherwise.

3. Keep Things the Same:

If you want to make sure that your asset stays exactly the way it is without any changes, you can set it up so that no one can make any modifications to it. This helps keep everything stable and predictable for everyone involved.

4. Reclaim Assets if Needed:

For extra security, you can enable a feature called clawback. This allows you to take back your asset from specific accounts if necessary. It’s like having a safety net in case something goes wrong, but it only works if you’ve also set up the option to change access permissions.

Here’s an example to understand this step with more clarity:

There is someone who issues a regulated asset and can use a special flag called AUTHORIZED_TO_MAINTAIN_LIABILITIES on the Stellar network. This flag lets them approve transactions case by case while still letting their account keep offers.

Suppose, there’s a person who owns an account where they keep their assets. They want to do a new transaction, so they ask the issuer to approve it. Once the issuer looks at it and agrees, the transaction is added in between a few other steps. For example, let’s say Roger wants to send money to Paolo. Here’s how it works:

  1. The issuer says Roger can use their account fully for the asset.
  2. The issuer says Paolo can use their account fully for the asset.
  3. Roger sends money to Paolo.
  4. The issuer changes Paolo’s account to a special state.
  5. The issuer changes Roger’s account to the same special state.

This “special state” lets the issuer approve specific transactions, such as when Roger sends money to Paolo. Both Roger and Paolo get the okay for this particular transaction and everything here happens all at once to make sure it goes smoothly.

Keep in mind: 

  • Stellar operates as an open-source and decentralized network
  • It grants any developer or business the ability to issue assets. 
  • There isn’t a dedicated “mint” or “issue” function on Stellar. 
  • Assets are typically created through a payment operation.
  • Assets are transferred from an issuing account to a recipient account.

Note: This is the simple version of the actual process that may entail additional steps depending on your project’s specifics and jurisdictional regulations. It is always advisable to seek advice from a legal expert before proceeding with asset tokenization or, you can get in touch with our experts for the ultimate assistance.

It’s advisable to explore the Stellar Asset Sandbox and testnet environment to familiarize yourself with the process. This facilitates practice and comprehension before tokenizing real-world assets.

– Blockchain Expert, Idea Usher

What Are Anchor Assets?

Anchor assets are the connectors within the Stellar network. It acts as gateways that link traditional currencies with digital tokens. These gateways make it easy for users to convert their regular money into digital tokens and vice versa. For example, when you deposit regular money into an anchor, they give you digital tokens that represent that money on the Stellar network. Similarly, if you want to exchange your digital tokens for real-world money, anchors can help you do that, too.

Services Provided By Anchors

  • Anchors facilitate currency exchanges and have the ability to create new digital assets.
  • This capability allows them to introduce novel forms of digital currency on the Stellar network.
  • Additionally, anchors can collaborate with existing digital assets to expand the range of options available to users.
  • They offer a spectrum of services, such as assisting in cross-border money transfers via Stellar.
  • Anchors also enable users to deposit and withdraw funds from the Stellar network.
  • Furthermore, they contribute to various projects and proposals within the Stellar ecosystem.

Because the Stellar network is open to everyone, organizations that provide services on Stellar need to be flexible and ready to adapt to changes. The Stellar Development Foundation helps by setting rules and guidelines for everyone involved in the network. These rules are called Stellar Ecosystem Proposals (SEPs), and they cover a wide range of topics, from how to handle regulated assets to how to identify users. Implementing these rules involves a three-step process: 

  1. Companies create and test their services on a testing network to make sure they work correctly. 
  2. They move their services to the main network where real transactions happen. 
  3. They connect their services with other tools and products on the Stellar network, making them available to everyone.

The Practical Applications Of Anchor Assets

1. Cross-Border Payments Via Stellar

Making Cross-Border Payments via Stellar requires cooperation between different anchors to make sure money can move smoothly between different countries using the Stellar network.

2. Deposits And Withdrawals On And Off Stellar

Enabling Deposits and Withdrawals on and off Stellar involves working together with wallet apps and anchors to make sure people can easily put money into and take money out of the Stellar network.

Why Are Anchor Assets Crucial For Stellar?

Anchor assets are important because they serve as essential links between the digital universe of Stellar and the real world. Here’s why anchor assets are so crucial:

1. Real-World Connection: 

Anchor assets, such as digital representations of various currencies like USD and EUR, establish a direct link between Stellar assets and real-world currencies. This connection provides users with a sense of reliability and confidence, as they can securely hold and exchange these assets for traditional fiat currencies.

2. Smooth On and Off Ramps: 

Anchors act as gateways, making it easy for users to convert between cash and Stellar assets. This streamlined process allows users to transition seamlessly between traditional currencies and Stellar assets, making the latter more accessible and usable for everyday transactions.

3. Increased Adoption: 

By offering users familiarity with real-world value through anchor assets, Stellar becomes more attractive to a wider range of users and businesses. This increased appeal encourages greater adoption and use of Stellar assets.

Anchor assets are like bridges in the Stellar network, connecting the traditional world of money with the new digital economy. They make it easy for people to move their money around, opening up new opportunities for everyone involved.

– Blockchain Expert, Idea Usher

Top 5 Benefits Of Using Stellar Assets

Stellar assets offer several benefits, particularly in the context of financial transactions and cross-border payments:

1. Enhanced Operational Efficiency: 

The Stellar blockchain maintains a dynamic ledger in real time that ensures unparalleled transparency and reliability for asset issuers. This streamlined approach minimizes transactional friction and optimizes operational processes.

2. Transparency: 

The Stellar blockchain provides organizations and individuals with access to real time transaction-specific data. This heightened level of transparency builds trust and accountability within the ecosystem.

3. Asset Tokenization: 

Stellar’s versatile platform enables the tokenization of various assets, ranging from stocks and real estate to commodities. This empowers seamless and secure trading while facilitating rapid asset transfer and ownership exchange.

4. Cross-Border Transactions: 

Stellar addresses one of the most common challenges in the global financial segment– the high cost and inefficiency of cross-border payments. The Stellar network enables individuals and institutions to execute swift and cost-effective fund transfers across borders.

5. Advancing Financial Inclusion: 

Stellar is efficient in financial inclusion by offering low-cost access to essential financial services. Particularly targeting the unbanked and underbanked populations, Stellar’s accessible framework opens doors to economic empowerment and inclusion.

6. Transaction Speeds: 

In Stellar Network, transactions are typically completed in under five seconds. Businesses and individuals can benefit from this rapid and efficient processing while ensuring smooth financial transactions and operations.

7. Multiple Currency Support: 

Stellar’s platform accommodates different types of currencies that cater to the multifaceted financial needs of users worldwide. This comprehensive support enhances accessibility and flexibility within the Stellar ecosystem.

Top 5 Use Cases For Tokenized Assets On Stellar

Tokenized assets on the Stellar network have a wide range of use cases. Here are some of them:

1. Streamlining Cross-Border Payments:

Stellar’s platform makes it easy to send money across borders quickly and affordably. With Stellar, individuals and businesses like yours can make international transfers without the hassle of traditional banking systems.

2. Digitizing Assets For Accessibility:

Stellar allows for the digital representation of various assets, like real estate, commodities, and currencies. This means more people can invest in these assets and access new financial opportunities.

3. Trusting Stellar For Securities:

Stellar’s reliability makes it a go-to for financial institutions looking to issue securities. Whether it’s bonds or money market funds, Stellar’s secure platform inspires confidence in investors.

4. Improving Efficiency And Transparency:

Stellar’s real time ledger keeps track of transactions and network data and offers unparalleled transparency with operational efficiency. Asset issuers can monitor funds and activities in real time, which can boost their trust and reliability.

5. Smart Contracts For Innovative Solutions:

The upcoming Soroban mainnet launch will introduce smart contract capabilities to Stellar. This opens up possibilities for automated savings, lending, and more, making Stellar even more versatile.


International money transfers are a pain point for businesses and individuals alike. Slow speeds, high fees, and abundant paperwork make transferring money across borders feel like an outdated relic. But Stellar Assets are turning out to be the game-changer that streamlines international payments, eliminating the wait times and transaction costs. They are more than just a payment shortcut; they also allow asset tokenization, loyalty programs, and much more. Stellar prioritizes one key thing – building an inclusive financial future. By utilizing the Stellar network’s potential, businesses like yours can unlock a world of new opportunities and contribute to a more connected global financial ecosystem. 

How Can Idea Usher Help?

If you want to utilize the potential of stellar and blockchain technology for your business, you will need expert guidance. At Idea Usher, we’re the experts who specialize in advanced technology that can help your businesses grow. We’ll guide you through every step of issuing, managing, and distributing your assets on the Stellar network. 

Beyond this, if you want a convenient cross-border payment solution, we can make them instant and cost-effective. If you’re seeking a loyalty program, we can turn points into valuable assets, and if you are concerned about your data security, we can put it on lockdown. 

This is the Stellar advantage, and our team at Idea Usher can make it your reality. We know how to make blockchain work for you, making your business run smoother and giving you more chances to succeed. 

Connect with us today, and let us make your business better and stay ahead of the game.

Hire ex-FANG developers, with combined 50000+ coding hours experience

Hire Ex - developers, with combined 50000+ coding hours experience

100% Developer Skill Guarantee; Or Your Money Back.


What is a Stellar asset?

It is a digital representation of a real-world valuable item stored and managed on the Stellar blockchain. This can include currencies, securities, loyalty points, or even physical assets like gold.

Which blockchain is Stellar on?

Stellar isn’t reliant on any other blockchain. It has its own independent network. This lets them focus on what they do best: fast and affordable transactions, without needing to use someone else’s system. 

What coins are in the Stellar ecosystem?

Lumens (XLM) is the native coin of Stellar, used for transaction fees and network maintenance. However, the ecosystem also supports a wide range of other digital assets, including tokenized versions of traditional currencies (USD, EUR) and cryptocurrencies (BTC, ETH).

Who owns Stellar blockchain?

Unlike traditional companies, Stellar isn’t owned by a single entity. It functions as a decentralized network overseen by a non-profit organization called the Stellar Development Foundation. This foundation plays a crucial role in maintaining and developing the Stellar ecosystem.

Share this article
Contact Us
HR contact details
Follow us on
Idea Usher: Ushering the Innovation post

Idea Usher is a pioneering IT company with a definite set of services and solutions. We aim at providing impeccable services to our clients and establishing a reliable relationship.

Our Partners
Contact Us
Follow us on
Idea Usher: Ushering the Innovation post

Idea Usher is a pioneering IT company with a definite set of services and solutions. We aim at providing impeccable services to our clients and establishing a reliable relationship.

Our Partners
© Idea Usher. 2024 All rights reserved.