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From Stellar Leads XRP Ledger in Tokenized Assets Despite Lower Coin Value

How could Stellar's leadership in tokenized assets affect Ripple?

Possible What happens if… A possibility worth considering, not a forecast.

Stellar's RWA volume leadership may increase competitive pressure on Ripple. Stellar has established itself as a leader in hosting tokenized real-world assets, boasting $3.5 billion in value, which surpasses the XRP Ledger's $2.5 billion. This growth is largely driven by Franklin Templeton money market funds and tokenized U.S. Treasuries, with Circle providing stablecoins like USDC to facilitate transactions. Because Ripple and Stellar are direct competitors in the real-world asset tokenization market, Stellar's increased volume and market presence could translate into heightened competitive pressure on Ripple's market share.

Reported by 1 independent outlet Written Yesterday
Effect
Mild negative
How direct
Stated in the reporting
When
Within weeks
The story
No new developments lately

How it reaches Ripple

Reported by news outlets

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The facts so far

As reported. Each one links to where it comes from.

  • Stellar hosts $3.5 billion in tokenized real-world assets247wallst.com
  • The XRP Ledger hosts $2.5 billion in tokenized assets247wallst.com
  • Stellar's value comes from a Franklin Templeton money market fund and tokenized U.S. Treasuries247wallst.com
  • Ripple and Stellar are direct competitors in the real-world asset tokenization market247wallst.com

Why it matters

The real-world asset (RWA) tokenization space represents a significant growth area for financial infrastructure. For Ripple, which competes in this market, Stellar's demonstrated ability to attract and host a larger volume of tokenized assets signals a strong competitive challenge. This competition is not just about volume, but about the underlying demand dynamics of the native cryptocurrencies, which are currently structured differently between the two chains.

The reports highlight that while Stellar's total value increases when fund managers issue new tokens, this does not require buying XLM, meaning the benefits primarily accrue to entities like Franklin Templeton and Circle. This structural difference in how asset value translates to coin demand is key to understanding the competitive landscape, as it suggests that market share gains may not automatically translate into native coin demand for either Stellar or Ripple.

What we don't know yet

  • Will a spot XLM fund emerge to bolster demand for Stellar's native coin?
  • How will Ripple respond to Stellar's increasing market share in RWA tokenization?

What would change this answer

A spot XLM fund emergesThis would create a direct demand channel for XLM, potentially increasing Stellar's overall market standing and strengthening its competitive position against Ripple.
The current structure remains unchangedThe gap between XRP and XLM may persist, limiting the competitive threat based solely on asset volume and keeping market pricing based on institutional demand rather than asset hosting.

— Other considerations

Beyond this explainer

Questions worth asking

Ideas the web ties closely to this story that the explainer doesn't mention. These are prompts for your own research: Brind hasn't answered them.

  • About Ondo Finance

    How does Ondo Finance compete with Franklin Templeton in the issuance of tokenized U.S. Treasuries?

    Explore Ondo Finance
  • About Digital Asset Management

    How are traditional digital asset management firms adapting their strategies to the rise of tokenized real-world assets?

    Explore Digital Asset Management
  • About Stablecoin

    Given that Circle provides USDC for transactions, how might the regulatory status of stablecoins impact the adoption rate of tokenized assets on both chains?

    Explore Stablecoin

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Ondo FinanceDigital Asset ManagementStablecoinTokenized Real World AssetsRippleU.S. TreasuriesMarket Share

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The full eventStellar Leads XRP Ledger in Tokenized Assets Despite Lower Coin Value Everything aboutRipple

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.