Stellar RWA market quadruples to $4B as tokenization accelerates

Stellar's tokenized RWA market grew more than fourfold year-to-date to roughly $4 billion, driven by institutional issuance of money market funds and Treasury products.

"Issuance on Stellar is running ahead of the lending markets and collateral pools that would make these assets usable onchain," RedStone said in a report published Wednesday, noting the network's DeFi total value locked stood at $213 million against more than $3 billion in RWA supply as of July.

Four products account for most of the growth: the Amundi and Spiko Overnight Swap Fund at $713 million, Spiko's T-Bill fund at $536 million, Ondo's USDY at more than $533 million and VuMe Bond 2030 at $500 million. Stellar's RWA supply stood at about $785 million in January, per RedStone. The network now carries 55 SEP-40 price feeds spanning Treasuries, corporate credit, tokenized gold and money market funds.

The Depository Trust and Clearing Corporation plans to bring DTC-custodied assets to Stellar in 2027, a move that could expose the network to the clearinghouse's $114 trillion in assets under custody. XLM traded at $0.1835 on Friday, down 0.9 percent over 24 hours, with a market capitalization of $6.36 billion, according to CoinGecko.

Issuance Outpaces DeFi Usability

The gap between RWA supply and onchain usage mirrors a broader industry constraint. Tokenized U.S. Treasury bills lead the global RWA market at $15.1 billion, followed by active yield strategies at $8.9 billion and private credit funds at $6.4 billion, according to Token Terminal data cited by CoinPedia. Ethereum remains the dominant settlement layer at roughly one-third of the tokenized asset market, while Stellar and Avalanche have emerged as key issuance rails.

On Stellar, lending protocol Blend holds $127 million in total value locked, of which just over $2 million sits in pools that accept RWAs as collateral. The mismatch stems from settlement schedules: Treasuries, credit funds and money market shares settle on T+1, T+2 or longer redemption timelines that do not match a lending market liquidating collateral at any hour, RedStone said.

The DTCC's 2027 timeline represents the next major milestone for the network. With $114 trillion in assets under custody, even a fraction of that volume moving onchain would dwarf current RWA issuance. RedStone adopted the SEP-40 oracle standard in June, providing the 24/7 price feeds needed to make tokenized assets viable as collateral.

XLM's price action remains tied to these fundamentals. The token tested its 200-day EMA in August but was rejected, and a weekly death cross between the 50-EMA and 200-EMA has formed, according to CoinPedia technical analysis. If the ascending trendline that has previously triggered important price moves holds, $0.30 and $0.50 become key levels to watch.

This article is for informational purposes only and does not constitute investment advice.