In the Stellar ecosystem, anchors are trusted financial entities that issue assets and connect Stellar to traditional banking systems. Anchors act as a bridge between fiat currencies and digital assets, allowing users to deposit money and receive a digital equivalent on Stellar’s blockchain.
For example, if a bank acts as an anchor, it can issue a tokenized version of USD, allowing users to send, trade, or exchange it seamlessly. This enhances Stellar’s use case in real-world financial transactions, potentially boosting demand and affecting the XLM price.