MV Capital - UNDP Scales Stellar Blockchain Payments After Successful Aid Pilots

The United Nations Development Programme has signed an agreement with the Stellar Development Foundation to expand blockchain-based aid distribution following pilots in multiple countries that delivered lower costs and greater reliability

From Testing to Broader Operations

The United Nations Development Programme (UNDP) has moved its blockchain payment initiative forward by entering a new agreement with the Stellar Development Foundation. This step follows 16 months of research and field testing across several locations. The pilots took place in Haiti, Syria, Kenya, Guatemala, and The Gambia, with additional work in Colombia and Papua New Guinea.

UNDP stated that the next phase will establish standard processes for its country offices to apply blockchain payments in a wider set of development and humanitarian programs. The effort runs through 2027 and is coordinated through the UNDP Alternative Finance Lab at the Istanbul Regional Hub. UNDP will handle operations while the Stellar Development Foundation offers technical support and connects with developer resources.

Key Results from Field TestsIn Syria, a Cash for Work program recorded payments on the blockchain and reduced distribution costs from 10% to 2%.
In Haiti, payments continued without interruption during a cellular network outage and achieved a 100% success rate.
Trials created permanent on-chain records of fund flows, supporting transparency in donor-supported activities.

Building Operational Frameworks

The agreement focuses on creating governance structures, participation guidelines, and deployment models. Country offices will gain tools to integrate these payment methods into national programs. This approach shifts from isolated experiments to repeatable systems suited for varied operating conditions, particularly where traditional banking access remains limited.

UNDP has also launched a Blockchain Advisory Group to guide technology adoption. The group examines applications in digital public infrastructure and public service improvements beyond payments. This internal body supports consistent decision-making across the organization's global work.

“Blockchain technology is emerging as a potential enabler of greater transparency, accountability, & trust in development systems.”UNDP statement

Context in Humanitarian and Development Work

These developments occur as organizations seek efficient ways to deliver assistance in areas with limited financial infrastructure. Blockchain networks that support stablecoins offer options for faster and lower-cost transfers across borders. The UNDP pilots provided concrete data on performance in real conditions.

Former United Nations Under-Secretary-General Vera Songwe addressed related topics at the World Economic Forum. She noted challenges in banking access and the role of digital tools.

“650 million people don’t have access to a bank account in Africa. With a smartphone, you have access to stablecoins, so you can save in a currency that is not exposed to fluctuations of inflation.”Vera Songwe, former UN Under-Secretary-General

The partnership aims to produce clear operational guidance by 2027. This includes frameworks for governance and integration that allow broader use while maintaining UNDP control over program delivery. The Stellar network, designed for cross-border transactions, aligns with needs in regions facing high traditional fees or service gaps.

Outcomes and Next Steps

Pilot data showed both cost savings and operational continuity. In Syria, every participant in the tested program received payments after the switch to blockchain recording. Haiti results demonstrated system function independent of local mobile networks. These findings informed the decision to proceed with standardized adoption.

Country	Program Focus	Observed Result
Syria (Aleppo)	Cash for Work	Distribution costs: 10% to 2%
Haiti	Payment transactions	100% success rate, continued during outage

UNDP will continue to define internal procedures that let field teams select blockchain payments where suitable. The Stellar Development Foundation will support implementation through technical resources. This structured rollout targets measurable improvements in aid delivery efficiency and accountability.

The initiative forms part of ongoing efforts to address gaps in financial services for development goals. By documenting fund movements on a public ledger, programs gain verifiable trails that donors and recipients can review. Country offices retain responsibility for execution while drawing on shared frameworks developed through the partnership.