UNDP expands Stellar blockchain after pilots slash aid payment costs

The United Nations Development Programme has expanded its partnership with the Stellar Development Foundation after blockchain payment pilots cut aid distribution costs from 10% to 2% and kept payments running during network outages.

The United Nations Development Programme announced Monday that it has signed a new agreement with the Stellar Development Foundation (SDF) following 16 months of blockchain payment pilots across multiple countries.

According to UNDP, the agreement creates a framework for its country offices to use blockchain-based payments across more development programs after testing the technology in Haiti, Syria, Kenya, Guatemala, and The Gambia, with additional projects completed in Colombia and Papua New Guinea.

During the pilot phase, UNDP reported measurable operational improvements. In Syria, a Cash for Work program that recorded payments onchain reduced distribution costs from 10% to 2%. 

In Haiti, another pilot continued processing aid payments despite a cellular network outage, showing that the system could keep operating even when conventional communications infrastructure was disrupted.

According to UNDP, the agency will now move from country-specific trials toward a standardized process that allows local offices to deploy blockchain payments where appropriate. The organization said the initiative is intended to improve the delivery of financial assistance while supporting development programs in regions with limited banking access.

Why is UNDP increasing its use of blockchain?

Alongside the payment expansion, UNDP has continued building internal expertise around blockchain technology. Last month, the agency launched a Blockchain Advisory Group during the Proof of Talk conference in Paris to guide future blockchain adoption across its development work.

According to UNDP, the group will examine applications beyond digital payments, including digital public infrastructure and public service modernization.

The latest agreement comes as blockchain payment networks, particularly those using stablecoins, continue gaining attention for cross-border transfers and remittances in markets where banking services remain difficult to access. International organizations and private companies have increasingly explored blockchain as an alternative settlement rail that can reduce costs and improve payment speed.

Speaking at the World Economic Forum annual meeting in January, former UN under-secretary-general Vera Songwe said digital payment systems have become increasingly important for developing economies.

Songwe told attendees that stablecoins are becoming “more important than aid” in some countries because they provide financial access where traditional banking services remain unavailable. She added that around 650 million people in Africa do not have bank accounts but can still access digital financial services through smartphones.

How is Stellar strengthening its payments network?

The UNDP agreement adds to a series of recent developments that have expanded Stellar’s presence in financial infrastructure.

Earlier this month, as previously reported by crypto.news, MoneyGram introduced its U.S. dollar stablecoin, MGUSD, on the Stellar blockchain. The token is issued by Bridge, a Stripe-owned company operating under the GENIUS Act framework, while M0 manages the smart contract infrastructure for minting and burning the stablecoin.

MoneyGram said the rollout will begin in the United States before expanding internationally through its network of more than 60 million active customers, with Fireblocks providing custody infrastructure.

Institutional adoption has also continued. In May, the Depository Trust & Clearing Corporation (DTCC) partnered with the Stellar Development Foundation to develop DTC custody asset tokenization services on the Stellar public blockchain.

The partners said the first tokenized assets are scheduled to go live during the first half of 2027, making Stellar part of DTCC’s multi-chain strategy for issuing and settling tokenized real-world assets.