Jake from SDF discusses how Stellar Ecosystem protocols have evolved to support real-world use cases including custodial accounts, wallet identity verification, and off-chain liquidity through standards like CEP10, CEP24, CEP6, and SEP38.
Jake, a senior software engineer at the Stellar Development Foundation, explains how Stellar Ecosystem protocols have adapted to support real-world financial use cases. He covers three main topics: custodial accounts and pooled wallets using memos and multiplex addresses for user identification; wallet identity verification through enhanced SEP10 authentication allowing wallets to prove their identity to anchors; and off-chain liquidity via the new SEP38 RFQ API, which enables anchors to provide fixed exchange rates instead of relying on volatile DEX pricing. These protocol changes allow businesses to offer quoted rates to users, avoid holding currency floats, and facilitate cross-border payments more reliably. Examples include Ntokens in Brazil using these standards to deliver Brazilian fiat while receiving USDC.