Key Takeaways:
- Stellar processed $32B in payments and holds $757M in RWAs on-chain in 2024.
- Soroban smart contracts and PYUSD integration are key 2025 catalysts.
- Risks include centralized supply, inflation, and rising RWA competitors.
- $XLM is a high-potential play in tokenization & cross-border payments—but execution is crucial.
Stellar ($XLM) is quietly positioning itself as a backbone for tokenized assets and cross-border payments. While its technology and institutional partnerships are solid, the path forward comes with significant execution risks.
Institutional Traction Driving Adoption
Stellar has steadily gained credibility among financial heavyweights. Collaborations with Visa, PayPal, MoneyGram, and Franklin Templeton signal real-world adoption. In 2024 alone, the network processed $32 billion in payments and supported $757 million in real-world assets (RWAs) on-chain. Stellar also boasts a growing user base of 10 million accounts, indicating both retail and institutional engagement.
Catalysts: Soroban Smart Contracts & PYUSD Integration
Key developments in 2025 could further bolster Stellar’s utility. The launch of Soroban smart contracts opens the door to more complex decentralized finance (DeFi) applications, while integration with PayPal’s PYUSD stablecoin enhances its cross-border payment capabilities. These catalysts may accelerate transaction volume and expand Stellar’s ecosystem, positioning $XLM as a strong contender in the $320 trillion global payments market.
Also Read: Stellar’s RWA Boom: How Templar Protocol Is Changing Lending Forever
Risks: Centralization and Competitive Pressure
Despite these positives, $XLM faces notable risks. The Stellar Development Foundation (SDF) controls roughly 56% of the token supply, raising concerns about centralization and inflation. Additionally, the RWA tokenization space is becoming more competitive, with players like Ondo and Plume challenging Stellar’s foothold. Execution risk remains high: Stellar must translate partnerships and technological upgrades into tangible network growth and adoption.
Also Read: What Is Stellar (XLM)? A Complete Guide to the Decentralized Cross-Border Payment Network
Big Picture: A High-Potential, High-Risk Play
Stellar sits at the intersection of $13 trillion in RWA tokenization and $320 trillion in global payments. Its mature technology and institutional partnerships offer substantial upside, but success depends on execution, ecosystem expansion, and navigating competitive pressures. For investors and developers alike, $XLM presents both opportunity and caution in equal measure.
