Stellar (XLM) and Hedera (HBAR): A 2025 Bull Case for Cross-Border Payment Ecosystems

The cross-border payment landscape in 2025 is being reshaped by blockchain networks that combine low-cost infrastructure, institutional-grade scalability, and strategic partnerships. Among the most compelling narratives are Stellar (XLM) and Hedera (HBAR), both of which have positioned themselves as critical players in the global financial infrastructure transition. This analysis examines how their 2025 advancements in protocol-level innovation and institutional collaboration are creating a bull case for their long-term value.

Stellar (XLM): Cost Efficiency and Protocol Upgrades Drive Institutional Adoption

Stellar's 2025 trajectory has been defined by its relentless focus on low-cost, high-throughput cross-border transactions. As of September 2025, the Stellar network has processed over 12 billion operations and supports 7.5 million accounts, with an average transaction cost of 0.000002 XLM—a fraction of a cent in value termsThe Hedera Council [https://hedera.com/council%E3%80%80]^[3]. This cost-effectiveness has made Stellar a preferred infrastructure layer for financial institutions seeking to reduce friction in remittances and fiat-to-crypto on/off ramps.

The Soroban smart contract platform, enhanced by Protocol 23 in September 2025, has further solidified Stellar's institutional appeal. Protocol 23 introduced live state prioritization and in-memory read resources, reducing smart contract execution costs by up to 70% while increasing throughputStellar | Announcing Protocol 23 [https://stellar.org/blog/developers/announcing-protocol-23]^[4]. These upgrades directly address developer pain points, enabling complex financial applications such as stablecoin bridges and decentralized exchange (DEX) integrations.

Institutional partnerships have also accelerated. Stellar's collaboration with MoneyGram and the U.S. Department of Commerce underscores its role in real-world use casesStellar | Blockchain Network for Smart Contracts, DeFi, Payments [https://stellar.org/]^[1]. With over 500,000 fiat-to-crypto on/off ramps integrated into its ecosystem, Stellar is not merely a payment rail but a foundational layer for global financial inclusionStellar | Blockchain Network for Smart Contracts, DeFi, Payments [https://stellar.org/]^[1].

Hedera (HBAR): Governance, Speed, and Energy Efficiency as Institutional Pillars

Hedera's 2025 growth has been driven by its hashgraph consensus algorithm, which enables 10,000 transactions per second (TPS) with finality in secondsHBAR (ℏ) - Hedera [https://hedera.com/hbar]^[2]. This performance, combined with energy-neutral operations, positions Hedera as a sustainable alternative to energy-intensive blockchains—a critical factor for environmentally conscious institutions.

The Hedera Council, composed of 39 collusion-resistant organizations, governs the network, ensuring decentralization while maintaining regulatory complianceThe Hedera Council [https://hedera.com/council%E3%80%80]^[3]. This model attracts enterprises wary of volatile governance structures, as the council's no-fork guarantee provides stability for long-term infrastructure investmentsThe Hedera Council [https://hedera.com/council%E3%80%80]^[3]. Hedera's support for Solidity-based smart contracts further lowers the barrier for Ethereum developers, enabling rapid deployment of cross-border payment solutionsStellar | Blockchain Network for Smart Contracts, DeFi, Payments [https://stellar.org/]^[1].

Institutional traction is evident in Hedera's stablecoin-enabled remittance systems, which facilitate real-time foreign exchange and instant settlementThe Hedera Council [https://hedera.com/council%E3%80%80]^[3]. These systems align with global efforts to digitize cross-border flows, particularly in emerging markets where traditional banking infrastructure lags.

Comparative Analysis: Infrastructure and Partnerships as Value Drivers

Both XLM and HBAR leverage protocol-level innovation to address cross-border payment challenges, but their approaches differ:
- Stellar prioritizes cost efficiency and developer accessibility, with Protocol 23 reducing operational overhead for institutionsStellar | Announcing Protocol 23 [https://stellar.org/blog/developers/announcing-protocol-23]^[4].
- Hedera emphasizes speed, energy neutrality, and corporate governance, appealing to enterprises requiring regulatory clarity and high throughputHBAR (ℏ) - Hedera [https://hedera.com/hbar]^[2].

Institutional partnerships reinforce these strengths. Stellar's integration with legacy financial players like MoneyGram demonstrates its interoperability with existing systemsStellar | Blockchain Network for Smart Contracts, DeFi, Payments [https://stellar.org/]^[1], while Hedera's council model ensures long-term network stabilityThe Hedera Council [https://hedera.com/council%E3%80%80]^[3]. Both projects are also expanding their on/off ramp ecosystems, with Stellar's 500,000+ integrations and Hedera's focus on stablecoin bridges creating flywheels for adoptionStellar | Blockchain Network for Smart Contracts, DeFi, Payments [https://stellar.org/]^[1].

Investment Thesis: A 2025 Bull Case

The bull case for XLM and HBAR hinges on their ability to monetize infrastructure adoption and lock in institutional partnerships. Stellar's Protocol 23 upgrades and expanding on/off ramp network position it to capture a larger share of the $3 trillion remittance marketStellar | Blockchain Network for Smart Contracts, DeFi, Payments [https://stellar.org/]^[1]. Meanwhile, Hedera's energy-efficient model and council-driven governance make it a compelling choice for enterprises prioritizing sustainability and complianceThe Hedera Council [https://hedera.com/council%E3%80%80]^[3].

For investors, the key differentiator lies in use-case specificity: Stellar excels in low-cost, high-volume payments, while Hedera targets enterprise-grade, real-time settlements. Both projects are well-positioned to benefit from the 2025 surge in cross-border digital asset adoption, particularly as central banks and fintechs seek scalable, compliant solutionsStellar | Blockchain Network for Smart Contracts, DeFi, Payments [https://stellar.org/]^[1].