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UN agency scales Stellar blockchain for global aid distribution

After 16 months of successful pilots that slashed transaction fees from 10% to 2% and maintained functionality during network failures, the United Nations Development Programme has formalized a broad agreement to integrate Stellar’s blockchain technology across its international aid distribution programs.

UN agency scales Stellar blockchain for global aid distribution

The partnership marks a transition from localized testing to a standardized deployment model for UNDP country offices. Following trials in nations including Syria, Haiti, Kenya, and Guatemala, the agency identified blockchain as a critical tool for navigating regions where traditional banking infrastructure is either prohibitively expensive or physically unreliable. In Syria, the shift to onchain payments significantly reduced overhead costs, while in Haiti, the system proved resilient enough to process financial assistance during a total cellular network outage.

To manage this expansion, the UNDP recently launched a Blockchain Advisory Group in Paris. This body will oversee the integration of digital public infrastructure and public service modernization beyond simple payment rails. The move aligns with broader institutional interest in stablecoins as a replacement for traditional aid channels in unbanked economies, where smartphone access often outpaces formal financial inclusion. Stellar, meanwhile, is bolstering its institutional footprint through recent collaborations with MoneyGram for stablecoin issuance and the Depository Trust & Clearing Corporation for asset tokenization services, further cementing its role as a core settlement layer for global financial institutions.

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