Stellar Development Foundation has introduced new type of Stellar account – Muxed account where one address is mapped to multiple users. They have similar features to underlying Stellar account from which they are created. However, they are longer at 69 chars (as compared to usual 56 chars) and start with character M rather than G.
So, who will benefit from muxed accounts? This will benefit custodial services which include cryptocurrency exchanges as well. They make use of pooled account model where they use a single Stellar account to manage all users by assigning them different memo IDs.
Muxed accounts will not require memo ID as they already have all the information needed. Interestingly, these accounts were implemented in Stellar Protocol 13 so they have been in the code since July 2020 but they were not kept hidden to allow projects to adjust to this new feature.
This does not mean all exchanges and custodial services including Stellar wallets will start offering muxed accounts to users. It is totally upto them to activate and implement it.
If you are a developer, all you need is latest Stellar SDK and then you would be able to created muxed accounts from primary account by including customer ID (or memo ID) and map them to existing database.
