What to know:
- UNDP expanded its Stellar partnership to scale blockchain payments across global humanitarian efforts.
- The agreement follows successful blockchain payment pilots conducted across 17 countries over sixteen months.
- A Syria pilot reduced aid distribution costs while improving transparency through blockchain transaction records.
The United Nations Development Programme (UNDP) has expanded its partnership with the Stellar Development Foundation (SDF) to make blockchain-based digital payments a standard part of its humanitarian and development operations.
Announced at the Hamburg Sustainability Conference on July 6, the agreement moves the collaboration beyond pilot projects toward building the governance and operational frameworks needed for UNDP country offices to use digital payments at scale. Coordinated by UNDP’s Alternative Finance Lab (AltFinLab) at the Istanbul Regional Hub, the initiative will run through 2027.
The decision follows 16 months of joint research across 17 countries. UNDP and SDF conducted live pilots in Haiti, Syria, Kenya, Guatemala, and The Gambia, while developing additional payment solutions in Colombia and Papua New Guinea. Under the agreement, Stellar will continue providing technical support, while the UNDP will remain responsible for program implementation.
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UNDP Expands Stellar Partnership for Digital Payments
This collaboration represents a transition from blockchain testing phases to actual implementations within international development projects. The organization is moving from testing blockchain technology to implementing digital payments as an everyday skill in development initiatives that are taking place in regions with inaccessible financial systems.
The pilots demonstrated measurable results. In Aleppo, Syria, the Cash for Work blockchain project was able to reduce the cost of payment distribution from about 10% to just 2% of the amount paid out, with all the beneficiaries receiving and spending their money.
In Haiti, the low-connectivity blockchain payment solution had an impressive success rate of 100% despite problems with mobile networks.
Blockchain Gains Ground in Development Finance
The deal comes amid rising usage of blockchain technology, from cryptocurrencies to payment and finance systems. Governments, banks, and other international organizations are leveraging the technology to enhance digital payments and remittances.
Recently, in the report titled “New Tech, New Partners: Transforming Development in the Digital Era,” UNDP shed light on blockchain. The report pointed out that digital payment platforms can be used to enhance financial inclusion and provide relief services in fragile and conflict-affected situations.
However, unlike any other commercial use of blockchain, UNDP seeks to reduce costs, increase transparency, and access humanitarian relief services.
What Happens Next
In the next two years, both organizations will work to create governance standards, onboarding processes, and implementation guidelines, while incorporating payment mechanisms into the programs of the countries.
The partnership is set to last until 2027, providing the governance structure, scale playbook, and evidence base for embedding blockchain-enabled payments as an enduring capability within UNDP’s work globally.
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