Institutions Bet Big on Stellar’s Tokenized Future as XLM Hits Key $0.40 Test

Stellar (XLM) has reached a significant milestone, nearing 10 million accounts on its network, as institutional interest continues to surge. This growth is fueled by the protocol’s focus on cross-border payments, financial inclusion, and tokenization of real-world assets. With trading volumes for XLM increasing by 115% in recent weeks, the token has attracted heightened attention from corporate and institutional investors, particularly as global regulatory developments unfold and digital asset ETFs gain traction.

The token’s price movement has been notably volatile, with XLM fluctuating within a $0.38–$0.40 range over the past 24 hours. Despite this, the asset has shown resilience, rebounding to $0.39 after a 2% dip, indicating continued institutional participation. Daily turnover reached $402.21 million, driven by regulatory optimism and ongoing filings for digital asset ETFs. Analysts suggest that XLM’s ability to maintain support above $0.38 reflects growing confidence among institutional players.

Stellar’s strategic focus on real-world applications has positioned it as a key player in the tokenization of financial assets. The network now hosts over $515 million in tokenized real-world assets (RWAs), including stablecoins like PayPal’s PYUSD and EURCV. The Stellar Development Foundation has also joined the ERC-3643 Association to promote standardized tokenization frameworks. This push has enabled institutions like Franklin Templeton to tokenize U.S. Treasuries on the network, marking a milestone in bridging traditional and digital finance.

The network’s Protocol 23 upgrade, set for September 2025, is expected to enhance scalability and developer tools, further solidifying XLM’s role in global finance. A key innovation is the support for parallel transactions, which will enable the network to process multiple transactions simultaneously rather than sequentially. This upgrade is critical as Stellar processes millions of transactions daily and facilitated $4 billion in RWA payments during Q2 2025.

Stellar’s ecosystem also continues to expand, with the integration of stablecoins like USDC, which have a circulating supply of approximately $170 million on the network. This growth is complemented by increasing adoption from fintechs and wallets, including MoneyGram, which uses Stellar’s USDC for cash-to-crypto conversions in 180+ countries. The ability to facilitate low-cost, near-instant transactions makes Stellar particularly attractive for remittances and micro-transactions, especially in underserved regions.

Looking ahead, XLM faces competition from other payment-focused cryptocurrencies, such as XRP, which benefits from regulatory clarity and institutional partnerships. However, Stellar’s unique emphasis on financial inclusion and grassroots adoption gives it a distinct advantage in markets where traditional banking services are limited. Analysts predict that XLM could consolidate around the $0.40–$0.45 range in the short term, with potential for doubling if broader DeFi integration gains momentum. The network’s focus on tokenization and real-world use cases positions it well for long-term growth, especially as global payments continue to evolve toward more digital and decentralized models.

Source:

[1] Stellar's XLM Tests $0.40 Resistance as Institutional Flows Drive Volatility (https://www.coindesk.com/markets/2025/08/27/stellar-s-xlm-tests-usd0-40-resistance-as-institutional-flows-drive-volatility)

[2] Meet Stellar (XLM): How the Network Is Redefining Global Payments (https://www.ccn.com/education/crypto/meet-stellar-xlm-global-payments/)