Stellar Targets $3 Billion RWA Tokenization by 2025

The Stellar Development Foundation has set an ambitious target of tokenizing $3 billion in real-world assets (RWAs) by 2025, reflecting the growing momentum in the RWA sector. This objective, more than 10 times the $290 million in RWA value on Stellar as of late 2024, signals a strong commitment to expanding the use of blockchain in traditional financial markets. The RWA sector has recently outpaced major cryptocurrencies like Ethereum and Bitcoin, with Stellar’s XLM and other RWA tokens experiencing notable gains [1].

In parallel, the Pi Network is preparing for a major milestone with the planned launch of its open mainnet in February 2025. Built on Stellar’s Core infrastructure, Pi Network stands to benefit from the increased focus on compliant RWA tokenization and could support regulated trading of assets such as real estate and equities. This development aligns with long-standing goals of Pi co-founder Nicolas Kokkalis, who has previously expressed interest in tokenized assets [1].

To further enhance RWA tokenization capabilities, the Stellar Development Foundation has joined the ERC-3643 Association, a blockchain initiative focused on creating permissioned tokens that adhere to global compliance standards. This collaboration aims to promote cross-chain interoperability between Stellar and Ethereum, enabling compliant tokenized assets to move seamlessly across ecosystems. ERC-3643, developed by Tokeny, includes a framework for digital assets with built-in compliance rules, ensuring that only verified participants can engage in transactions [1].

Stellar’s membership in ERC-3643 is a strategic move that underscores its commitment to open standards and global regulatory alignment. Tomer Weller, Chief Product Officer at the Stellar Development Foundation, stated that the partnership aims to scale tokenized RWAs in a secure and compliant manner. The timing of this initiative also coincides with the upcoming release of Stellar’s Protocol 23, which is expected to enhance the capabilities of the Pi Network and facilitate the deployment of decentralized applications within the Pi AI App Studio [1].

The convergence of Stellar’s RWA ambitions and Pi Network’s technological expansion has drawn significant attention from both institutional investors and retail traders. The potential for increased liquidity, broader adoption, and regulatory clarity could pave the way for greater integration of RWAs in fintech and DeFi ecosystems. Analysts have suggested that the combination of compliant tokenized assets and improved infrastructure could support the long-term value of Pi Coin and other RWA-linked tokens [1].

As Stellar and Pi Network continue to pioneer developments in the RWA space, the broader crypto market may see increased institutional engagement and regulatory scrutiny. The success of these initiatives will likely influence the pace of adoption and the extent to which traditional financial assets transition to blockchain-based formats [1].

Source: [1] Pi Network Set for RWA Tokenization as Stellar Partners with ERC-3643 (https://coingape.com/pi-network-set-for-rwa-tokenization-as-stellar-partners-with-erc-3643/)