Real-World Assets on the Stellar Network: Institutional Adoption and Scalability as Key Drivers of Tokenized Asset Growth

The rise of tokenized real-world assets (RWAs) has emerged as one of the most transformative trends in institutional finance. At the forefront of this movement is the Stellar Network, a blockchain platform that has evolved from a cross-border payment solution into a robust infrastructure for tokenizing traditional assets. By 2025, Stellar's institutional adoption and technical scalability have positioned it as a critical enabler of RWA growth, with major financial players and humanitarian organizations leveraging its capabilities to redefine efficiency, transparency, and accessibility in global finance.

Institutional Adoption: A Catalyst for RWA Tokenization

Stellar's appeal to institutions lies in its ability to tokenize assets with minimal friction. A prime example is Franklin Templeton, which launched the Franklin OnChain U.S. Government Money Fund on Stellar in 2025. This initiative allows investors to access a tokenized money market fund with real-time settlement and reduced operational costs, demonstrating how blockchain can modernize traditional asset classes, as detailed in an an Aldomedia report. Similarly, WisdomTree and Nonco have adopted Stellar for tokenization projects, further validating the network's utility in institutional-grade applications, according to Stellar case studies.

The integration of stablecoins like USDC and Circle's EURC has also expanded Stellar's reach. MoneyGram, for instance, now offers seamless cash and crypto conversions at 55,000 global access points, leveraging Stellar's low fees and fast settlement times to enhance remittance services, as noted in the Aldomedia report. Meanwhile, PayPal has issued its regulated stablecoins on Stellar, underscoring the platform's role in bridging legacy finance and digital currencies, according to an AllInCrypto article.

Beyond financial services, Stellar has made headlines in humanitarian efforts. The UNHCR has used USDC on Stellar to disburse aid in Ukraine, enabling direct, transparent, and efficient transfers to displaced persons. This application highlights the network's potential to address real-world challenges while maintaining institutional-grade security, as shown in Stellar case studies.

Scalability: The Technical Backbone of Growth

For any blockchain to support large-scale RWA adoption, scalability is non-negotiable. Stellar's recent Whisk protocol upgrade has been a game-changer, boosting transaction throughput to 5,000 transactions per second (TPS) through parallel processing, the Aldomedia report notes. This enhancement is critical for handling the growing volume of tokenized assets, with $3.4 billion in RWA-related payments processed in Q1 2025 alone, according to the same Aldomedia analysis.

The network's technical resilience is further evidenced by its ability to support $451.01 million in RWA value as of the latest data, driven by protocols like Franklin Templeton and Circle, according to the RWA.xyz network page. Stellar's low-cost, high-speed infrastructure has also attracted BiGGER and GIZ, which use the network for efficient payroll systems, showcasing its versatility across sectors (see Stellar case studies).

Importantly, institutional confidence in Stellar is reflected in XLM accumulation trends. Over six months, institutional XLM holdings have risen by 39%, signaling a strategic bet on the network's long-term utility, as reported by Aldomedia. This accumulation aligns with the Stellar Development Foundation's (SDF) ambitious targets: to hold $3 billion in RWA value and facilitate $110 billion in RWA volume by year-end 2025, according to a Holder.io report.

Future Outlook: A Platform for Global Financial Infrastructure

The convergence of institutional adoption and technical scalability paints a compelling picture for Stellar's future. As more enterprises tokenize assets-from real estate to government securities-the network's role in global financial infrastructure will only expand.

For investors, Stellar represents a unique opportunity to participate in the RWA revolution. Its partnerships with financial giants, humanitarian applications, and technical upgrades position it as a foundational layer for tokenized assets. With the SDF's goals within reach and institutional demand surging, Stellar is not just a blockchain-it's a bridge to a new era of finance.