The United Nations Development Programme (UNDP) and the Stellar Development Foundation (SDF) have extended their partnership to expand the use of blockchain-based digital payments across UNDP programmes, marking a shift from pilot projects toward broader operational deployment.
Announced on July 6, the new agreement builds on more than a year of collaboration between the two organizations, during which they researched blockchain payment applications across 17 countries and conducted live pilot programmes in Haiti, Syria, Kenya, Guatemala and The Gambia, alongside prototype projects in Colombia and Papua New Guinea.
Rather than launching new experimental trials, the latest phase focuses on establishing the governance, operational procedures and technical infrastructure needed for UNDP country offices to integrate blockchain-based payments into their regular programme delivery.
The initiative is coordinated by UNDP’s Alternative Finance Lab (AltFinLab), based at the organization’s Istanbul Regional Hub, while the Stellar Development Foundation will continue providing technical guidance related to the Stellar blockchain network and supporting ecosystem participants.
Pilot Programmes Demonstrated Faster and More Transparent Payments
According to UNDP, the decision to expand the programme follows encouraging results from several field deployments.
One of the most notable pilots took place in Aleppo, Syria, where blockchain technology was used to distribute Cash for Work stipends. UNDP reported that recording payments on-chain reduced estimated distribution costs from approximately 10% under conventional payment methods to roughly 2%, while creating a transparent and traceable record of every transaction.
In Haiti, the organizations tested a payment system designed to operate in environments with limited telecommunications infrastructure. UNDP said the pilot maintained a 100% transaction success rate during testing, even when cellular connectivity was unavailable, allowing payments to settle almost instantly under difficult operating conditions.
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Across all pilot projects, the organizations emphasized improved payment traceability, enabling programme administrators to verify where funds were distributed while maintaining records that were previously unavailable through traditional payment systems.
Earlier this year, UNDP also highlighted aspects of the initiative in its report, New Tech, New Partners: Transforming Development in the Digital Era, which examined how digital payment infrastructure could improve financial inclusion, remittance services and humanitarian assistance in fragile or conflict-affected regions.
Focus Shifts From Experimentation to Institutional Adoption
The expanded partnership reflects a broader evolution in how international development organizations are evaluating blockchain technology.
Rather than treating blockchain payments as isolated technology demonstrations, the new agreement aims to establish standardized governance, onboarding procedures, operational safeguards and implementation guidance that would allow country offices to adopt digital payments more consistently across humanitarian assistance, social protection programmes and financial inclusion initiatives.
The agreement will run through 2027 and is expected to conclude with a comprehensive evidence base, operational playbook and formal transition plan intended to allow the capability to continue beyond the current partnership.
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Robert Pasicko of UNDP’s Alternative Finance Lab said the collaboration has demonstrated that blockchain-based payments can reach beneficiaries in environments where conventional financial infrastructure is limited, adding that the next objective is to make the capability a routine part of programme delivery rather than an experimental technology.
Candace Kelly, Chief Legal & Policy Officer at the Stellar Development Foundation, said the pilots demonstrated how public blockchain infrastructure can support aid delivery when designed around real-world operational challenges, particularly in last-mile environments.
While blockchain technology has been explored for humanitarian payments for several years, the UNDP initiative represents one of the more extensive efforts by a United Nations agency to transition from pilot programmes toward institutional implementation, reflecting growing interest in digital payment infrastructure that improves transparency, efficiency and financial inclusion.
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