- Stellar’s XLM emerges as the go-to blockchain for tokenization, attracting major institutions like WisdomTree, Franklin Templeton, and Circle.
- Tokenization on Stellar empowers individuals with financial access and streamlines processes for institutions, creating a win-win scenario.
The traditional financial system is ripe for disruption, and blockchain technology is leading the charge with Tokenization, converting real-world assets (RWAs) like stocks, real estate, or art into digital tokens on a blockchain. Stellar’s XLM a leading blockchain network, is emerging as the platform of choice for major financial institutions.
While various blockchain projects exploring tokenization, the Stellar network stands out for its early adoption and ongoing commitment to the technology. Stellar has been collaborating with leading financial institutions for years, bringing RWAs like securities and stablecoins onto its platform. This experience, coupled with the recent launch of Protocol 20 on Soroban smart contracts, positions Stellar as a preferred choice for major players like WisdomTree, Franklin Templeton, and Circle.
Opportunities for Individuals and Institutions Through Stellar
Tokenization offers a win-win scenario for both individuals and institutions. Individuals gain financial access to previously inaccessible opportunities, like generating yield through products like WisdomTree Prime. Additionally, stablecoins like USDC provide global access to USD exposure, regardless of location.
For institutions, tokenization translates to cost savings and efficiency. By eliminating manual processes and intermediaries, issuers can experience significant operational and backend cost reductions. Tokenization also streamlines processes: a recent example is Liquid Mortgage, which reduced MBS reporting time from 55 days to just 30 minutes.
Notably, In turn, Stellar has become the preferred platform of major financial institutions that have had their Stellar digital assets approved by regulatory agencies such as the SEC and NYDFS.
Democratizing Financial Access for Individuals
Stellar CEO, Denelle Dixon, in a recent fireside chat, highlighted that he sees tokenization as a game-changer for financial access. not only benefiting institutions but also empowering individuals who have been excluded from traditional systems, finally granting them a chance to participate in the financial landscape.
Stellar boasts a leading position in tokenized RWAs, Data shows that nearly 40% of the tokenized treasury market is built on its platform. This dominance can be attributed to factors like Steller’s low cost, built-in asset controls and compliance features, User-friendliness, and a supportive ecosystem. The network Stellar partners with custodians, analytics providers, and other platforms to offer a comprehensive suite of services for asset issuers.
Beyond its native token XLM, the Stellar (XLM) ecosystem positions itself as a launchpad for newly minted assets. It fosters a comprehensive environment with various platforms, wallets, and on- and off-ramps, catering specifically to the needs of these new assets. This extensive infrastructure empowers asset issuers to tap into a wider user base.
By integrating with the numerous companies building on Stellar, these issuers gain access to a larger addressable market, potentially fueling the growth and adoption of their assets
