$5T Custody Giant Backs Stellar: Will XLM Bounce Hard?

XLM comes back into focus as the RWA field garnered a $15.1 billion volume in Q1, already exceeding the first half of 2025.

$5T Custody Giant Backs Stellar: Will XLM Bounce Hard?

Stellar Network expands its institutional range, gaining traction in the $24 billion real-world asset (RWA) market. In the span of one week, four major institutions announced plans to adopt Stellar (XLM) one way or another.

$5 Trillion Custody Behemoth Picks Stellar Network

The biggest announcement yet came from State Street – the crypto custody giant holds beyond $5 trillion in assets under management (AUM). Founded in 1792, the OGs of traditional finance have pivoted to crypto upon the launch of Solana-based Onchain Liquidity Sweep Fund (SWEEP).

This tokenized private liquidity fund is now available on Stellar (XLM) & Ethereum (ETH), expanding the initial range to the most promising blockchains in the RWA field. A few weeks ago, Stellar (XLM) hosted Franklin Templeton’s BENJI tokenized fund, deploying roughly $638 million in on-chain capital.

XLM Finds Role As a Shield From Political Instability

In other related news, Figure, the tech start-up company, launched a yield-bearing stablecoin on Stellar Network with the ticker YLDS. This product is specifically targeting Latin America: impacted by the political instability, drastic local currency inflation & banking service depreciation.

The region is lacking simple everyday banking services, let alone money-market-style yield-bearing opportunities. During 2025, Stellar Lumens (XLM) has processed beyond $55.6 billion in stablecoin trading volume, employing USDC for most transactions.

With the stablecoin market expanding with new USD-backed assets, the niche could surpass $100 billion in 2026.

When it comes to building credit infrastructure, Stellar Development Foundation (SDF) just announced a $100 million investment in Ascend, a platform dedicated to RWA-based credit infrastructure.

The move makes perfect sense as RWA-tied transactions have exceeded $15.1 billion, according to the latest research from CoinGecko. That’s more than the whole initial half of 2025.

Four Key Updates Overshadowed By Soft XLM Rebound

Last but not least, Mesh, a crypto payments platform, integrated with Stellar (XLM) for quick & cost-effective payments, choosing XLM Network as the settlement layer. Attracting four major enterprises in a matter of a week, Stellar (XLM) spiked by 2.7% in 7 days, now trading at $0.1649, according to SoSoValue’s live digital asset price tracker.

With new integrations & partnerships in place, Stellar’s native crypto could take a swing at $0.20 with solid retail interest & simultaneous large investor support.

Presently, the crypto whales are looking indecisive, with the Chaikin Money Flow (CMF) flashing figures just above zero on most timeframes across major crypto platforms. For XLM, $0.171 is the near-term level to watch in order to prove the ongoing rebound rally is really sustainable.

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People Also Ask:

What’s the news?

State Street, a $5 trillion custody giant, is expanding its tokenized fund SWEEP to the Stellar network together with Galaxy Digital.

Why does this matter?

This is major institutional validation for Stellar. It shows big traditional finance players are choosing Stellar for real on-chain products.

Where is XLM now?

XLM is currently trading around $0.16 – $0.17.

Will this push XLM higher?

It’s a strong catalyst. It should support a solid bounce, though bigger moves will need more adoption and market help.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Ciphera Journalist, covering memecoins & latest developments. Tadas has moderate holdings in SHIB, HBAR, LTC, MATIC and a selection of low-cap meme currencies.

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