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Which venue expanded XLM tokenization?

Mercado Bitcoin, a major cryptocurrency exchange in Brazil, is growing its use of Stellar (XLM) by launching new tokenized income and equity products on the Stellar network, according to a recent market update.

  1. Location: Mercado Bitcoin in Brazil is expanding tokenized offerings using Stellar.
  2. Growth: New tokenized fixed-income and equity products settle transactions on Stellar’s blockchain.
  3. Importance: This move strengthens the use of real-world assets with XLM in regulated financial markets.

Deep Dive

1. Location

Mercado Bitcoin is leading the expansion of XLM tokenization by introducing tokenized income and equity products built on the Stellar (XLM) blockchain, as detailed in a late-December market update.

This development fits with Brazil’s growing trend of adopting cryptocurrencies for practical uses rather than just speculation. Tokenized products and stablecoins are becoming more common alongside traditional financial services.

2. What’s Expanding

The focus is on tokenized fixed-income (like bonds) and equity (stock-like) products. These use Stellar’s capabilities to issue assets and ensure compliance, allowing for efficient on-chain settlement and distribution of returns. Mercado Bitcoin is pushing these offerings on Stellar, which strengthens XLM’s role in Brazil’s regulated financial environment (market update).

Additional reports highlight similar growth in regulated tokenization on Stellar, emphasizing the network’s ability to scale operations and handle settlements for real-world assets (analysis).

3. Why It Matters

Real-world assets (RWA) have become a major focus in crypto this year, with many platforms and tokens gaining attention for their role in tokenizing traditional assets. Stellar is often mentioned in this context. Expanding tokenized income and equity products on Stellar increases demand for its network and shows XLM’s potential for secure, compliant settlement processes (narrative report).

What this means: If you follow XLM for its practical uses rather than just price changes, keep an eye on how regulated tokenization and settlement activity grow on Stellar. More asset issuance and distribution can indicate stronger network adoption.

Conclusion

Mercado Bitcoin is driving the expansion of XLM tokenization by focusing on regulated fixed-income and equity products on Stellar. This aligns with the broader trend of adopting real-world assets in crypto and strengthens XLM’s role in compliant, on-chain settlements. Watching future product launches and institutional involvement will help assess how lasting this growth in tokenization is for Stellar.


What could affect the price of XLM?

Stellar’s price outlook balances its real-world uses with current market challenges.

  1. Protocol 23 Upgrade (Positive) – Boosts network speed, potentially sparking more decentralized finance (DeFi) activity.
  2. Real-World Asset Tokenization (Mixed) – Growing interest from institutions but faces strong competition.
  3. Technical Risks (Negative) – Key price support around $0.21 is under pressure.

In-Depth Look

1. Protocol 23 Upgrade (Positive Impact)

What’s Happening:
Stellar’s upcoming Protocol 23 upgrade, expected in the third quarter of 2025, will allow smart contracts to run in parallel and improve data handling with Merkle tree optimizations. This aims to increase transaction speed to 5,000 transactions per second (TPS), which is four times faster than before. This upgrade is designed to meet growing demand for blockchain solutions in areas like international payments and central bank digital currencies (CBDCs) (The Defiant).

Why It Matters:
Faster and more efficient processing could attract more developers to Stellar’s Soroban smart contract platform. The total value locked (TVL) on Soroban has already grown ninefold year-over-year to $168 million. For comparison, Ethereum’s price rose 58% in six months after its major upgrade, suggesting a similar boost could happen for Stellar if adoption increases.

2. Real-World Asset Tokenization (Mixed Impact)

What’s Happening:
Stellar currently supports $654 million in tokenized assets, including Franklin Templeton’s $445 million treasury fund. However, it trails behind Ethereum ($18.8 billion) and Polygon ($2.1 billion) in this space. PayPal’s launch of its stablecoin PYUSD adds more use cases but faces regulatory challenges under Europe’s MiCA rules (CoinGecko).

Why It Matters:
XLM’s price has surged 185% in 2025, driven by interest in tokenized real-world assets (RWA). Still, Ethereum’s dominant 50% market share limits how much Stellar can grow in this area. Stellar’s success will depend on turning pilot projects with companies like Visa and MoneyGram into real transaction volume. In 2023, Stellar processed $4.2 billion in USDC payments, showing strong usage.

3. Technical and Market Sentiment Risks (Negative Impact)

What’s Happening:
Stellar’s price recently fell below a key support level at $0.225, with the Relative Strength Index (RSI) at 41, indicating weak buying momentum. Market sentiment is cautious, with a fear index at 29, and Bitcoin’s dominance at 59% is limiting investment in alternative cryptocurrencies (CoinMarketCap).

Why It Matters:
If Stellar’s price drops below $0.21, the next support level is around $0.17–$0.18, based on the 200-week moving average. However, past patterns show that after similar technical dips, Stellar rallied 600% in 2024, especially if Bitcoin’s price stabilizes.

Conclusion

Stellar’s price in 2026 will largely depend on how well the Protocol 23 upgrade is adopted amid broader market challenges. Growth in tokenized real-world assets and compliance with ISO 20022 standards provide solid foundations. However, Bitcoin’s market dominance and relatively low DeFi activity compared to competitors like Solana and Ethereum limit upside potential. The launch of LayerZero’s interoperability across 150 blockchains could help offset some technical weaknesses. Watch the $0.21–$0.22 price range closely—a sustained move above $0.26 might indicate a positive trend reversal.


What are people saying about XLM?

The Stellar (XLM) community is divided between hopes for a price breakout and warnings of a downturn as XLM hovers near an important support level. Here’s the key discussion:

  1. Bullish technical analysis points to a $0.30 price target
  2. Growing use of real-world assets on Stellar supports long-term optimism
  3. A partnership with LayerZero is generating excitement about improved cross-chain compatibility

Deep Dive

1. @bpaynews: $0.30 Breakout Zone Bullish

"XLM price prediction shows potential 36% rally to $0.30 within ONE month if key $0.22 support holds."
– @bpaynews (2,008 followers · 12/25/2025 10:56 AM UTC)
View original post
What this means: Technical analysts are optimistic because indicators like the MACD (a tool that tracks momentum) show positive signs, and the $0.22 price level has historically acted as a strong support. If XLM rises above $0.23, it could confirm upward momentum toward the $0.28–$0.31 range.

2. @thebu11runner: Real-World Asset (RWA) Momentum Bullish

"Stellar is built for real asset tokenization – projects like MINTX are leading with gold/silver tokens."
– @thebu11runner (26,795 followers · 12/26/2025 11:50 PM UTC)
View original post
What this means: Stellar is gaining traction as a platform for tokenizing real-world assets like gold and silver. With $522 million in tokenized assets and partnerships with major firms like Franklin Templeton (which holds $445 million in treasury tokens), Stellar is positioning itself as a bridge for institutional investors. However, the timeline for widespread adoption is still uncertain.

3. @scopuly: LayerZero Integration Mixed

"150+ blockchains connected via LayerZero could boost Stellar’s cross-border payments – but needs real adoption."
– @scopuly (15,258 followers · 12/30/2025 01:12 PM UTC)
View original post
What this means: The partnership with LayerZero aims to connect Stellar with over 150 other blockchains, potentially improving cross-border payment options. However, despite this promising technology, XLM’s price has dropped about 30% since August 2025, reflecting market skepticism until we see actual usage and adoption grow.

Conclusion

The outlook for Stellar is mixed. There are short-term risks based on technical price movements, but also promising long-term opportunities tied to institutional use and real-world asset tokenization. The $0.22–$0.23 price range is a critical support zone to watch. Additionally, the Total Value Locked (TVL) in Stellar-based real-world assets, currently at $86.7 million, serves as a key indicator of the platform’s health. If XLM falls decisively below $0.20, it could invalidate bullish trends, but continued ecosystem growth might revive the push toward $0.30.


What is the latest news about XLM?

Stellar is making moves with new partnerships and facing some price ups and downs as tokenization becomes more popular. Here’s the latest update:

  1. LayerZero Integration (Dec 29, 2025) – Stellar improves its payment system by connecting with LayerZero, allowing easier transfers across multiple blockchains.
  2. Tokenized Stocks Growth (Dec 30, 2025) – Stellar supports $1.2 billion worth of blockchain-based stocks, helping institutions trade securely and cheaply.
  3. Price Support Tested (Dec 27, 2025) – XLM’s price dropped to $0.21, showing signs of weakness in the market.

In-Depth Look

1. LayerZero Integration (Dec 29, 2025)

What happened?
Stellar teamed up with LayerZero, a technology that lets assets like USDC move smoothly across more than 150 blockchains. This makes cross-border payments faster and cheaper, aiming to attract banks and big companies.

Why it matters
This partnership is a positive sign for Stellar (XLM) because it helps connect traditional finance with decentralized blockchain networks. The real test will be if banks and financial institutions start using it regularly. (Cointribune)

2. Tokenized Stocks Record Growth (Dec 30, 2025)

What happened?
Stocks like Apple and Tesla are now available as tokenized assets on blockchains, reaching a market value of $1.2 billion. Stellar supports these tokenized stocks by offering features that meet regulatory requirements (like KYC/AML) and compatibility with global payment standards (ISO 20022). While Ethereum leads in decentralized finance (DeFi) tokenization, Stellar attracts institutions with very low fees.

Why it matters
Stellar’s focus on following regulations helps it bridge traditional finance and crypto markets. However, it still faces strong competition from Ethereum’s larger ecosystem. (Cointribune)

3. Technical Weakness Emerges (Dec 27, 2025)

What happened?
The price of Stellar’s token, XLM, fell below a key support level of $0.225. The Relative Strength Index (RSI), a tool that measures momentum, dropped to 38.8, indicating bearish (downward) pressure. Experts warn that if XLM falls below $0.21, it could slide further toward $0.10. However, some signs suggest it might stabilize in the short term.

Why it matters
This price drop reflects a general weakness in altcoins (cryptocurrencies other than Bitcoin), especially as Bitcoin holds a dominant 59% share of the market. Traders are watching for XLM to rise above $0.26 to regain confidence. (CoinMarketCap)

Conclusion

Stellar is making progress by improving blockchain connections and supporting traditional finance through tokenized stocks. However, its token price is showing signs of struggle, reflecting broader market caution. The big question for 2026 is: Will more institutions start using Stellar fast enough to overcome the current downward price trend?


What is expected in the development of XLM?

Stellar’s roadmap is centered on improving scalability, encouraging business use, and enabling connections with other blockchains. Key upcoming milestones include:

  1. Protocol 23 Mainnet Upgrades (Q3 2025) – Boosting transaction speed to 5,000 transactions per second (TPS).
  2. LayerZero Integration (Q4 2025) – Connecting Stellar with over 150 other blockchains for easier asset transfers.
  3. Freighter Wallet Mobile Launch (Q4 2025) – Introducing a mobile wallet with better security and one-time-use wallets.
  4. Enterprise Payment Solutions (2026) – Making it easier for businesses to use Stellar for payments without complex setups.
  5. Real-World Assets & Stablecoin Growth (2026) – Expanding tokenized assets and integrating PayPal’s PYUSD stablecoin.

In-Depth Look

1. Protocol 23 Mainnet Upgrades (Q3 2025)

What’s happening:
In September 2025, Stellar will roll out Protocol 23, which allows smart contracts to run in parallel. This means the network can handle up to 5,000 transactions per second, making it faster and cheaper to use. It also introduces better ways to track transactions through something called Unified Asset Events (The Defiant).

Why it matters:
Faster and cheaper transactions make Stellar more attractive to developers and businesses. However, Stellar still faces competition from other blockchains like Solana, which are also popular for fast transactions.

2. LayerZero Integration (Q4 2025)

What’s happening:
Stellar is partnering with LayerZero to allow assets like USDC to move seamlessly across more than 150 blockchains. This will make cross-border payments and asset transfers easier and more efficient (Scopuly).

Why it matters:
This connection increases Stellar’s usefulness, but its success depends on whether financial companies actually use it.

3. Freighter Wallet Mobile Launch (Q4 2025)

What’s happening:
The Freighter Wallet, Stellar’s digital wallet, will launch a mobile version with improved security features and single-use wallets designed for quick crypto payments (NewsBTC).

Why it matters:
This could help more people, especially in developing countries, start using Stellar. However, it will compete with well-known wallets like MetaMask.

4. Enterprise Payment Solutions (2026)

What’s happening:
Stellar plans to introduce “Hosted Mode,” a feature that lets businesses make payments with just one click, without needing to fully integrate with the blockchain. This targets companies involved in remittances and tokenized assets (U.Today).

Why it matters:
If businesses adopt this, it could be a big win for Stellar. Partnerships with companies like Visa and MoneyGram add credibility, but regulatory challenges could slow things down.

5. Real-World Assets & Stablecoin Growth (2026)

What’s happening:
Stellar aims to expand its market for tokenized real-world assets (RWAs), including U.S. Treasury tokens from Franklin Templeton and integrating PayPal’s PYUSD stablecoin (Yahoo Finance).

Why it matters:
This growth could attract institutional investors, but it depends on stable economic conditions and clear regulations.

Conclusion

Stellar’s roadmap for 2025–2026 focuses on making the network faster, easier to use for businesses, and better connected with other blockchains. The LayerZero integration and new enterprise tools could help position Stellar as a bridge between traditional finance and decentralized finance. Still, competition and how quickly users adopt these features will be key. Will Stellar’s focus on compliance and scalability unlock its full potential with institutions?

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What updates are there in the XLM code base?

Stellar’s technology received major updates in late 2025, focusing on making the network faster, more connected with other blockchains, and more private.

  1. LayerZero Integration (December 30, 2025) – Allows asset transfers across more than 150 blockchains.
  2. Protocol 23 Upgrade (September 3, 2025) – Improves smart contract performance and increases transaction speed.
  3. Protocol X-Ray (November 24, 2025) – Prepares the network for privacy features coming in early 2026.

Detailed Overview

1. LayerZero Integration (December 30, 2025)

What happened: Stellar added LayerZero’s technology, which lets users move assets like USDC smoothly between over 150 different blockchains.

This upgrade makes Stellar a stronger player in global payments by simplifying transactions that involve multiple blockchains. It also provides developers with standard tools to create apps that work across different blockchain networks, starting with Ethereum, Solana, and Cosmos.

Why it matters: This is good news for Stellar (XLM) because it positions the network as a central hub for decentralized finance (DeFi) and business solutions that need to work across multiple blockchains. Users can expect faster and cheaper cross-chain transactions. (Source)

2. Protocol 23 Upgrade (September 3, 2025)

What happened: Protocol 23 introduced a way to run smart contracts in parallel, which cuts transaction costs by about 40% and allows the network to handle up to 5,000 transactions per second.

Other improvements include storing contract data in faster memory, better caching for modules, and a new event format to help developers. Network validators can now adjust settings to improve how quickly the network reaches agreement on transactions.

Why it matters: This update is somewhat positive for Stellar (XLM). It makes the network more efficient for DeFi applications, but its success depends on developers moving their apps to the new system called Soroban. Also, node operators need to update their software to keep the network running smoothly. (Source)

3. Protocol X-Ray (November 24, 2025)

What happened: Protocol X-Ray will add built-in privacy features using advanced cryptography (zk-SNARKs) to the Soroban smart contract platform.

This allows developers to create apps that keep transactions confidential, like private payments, without slowing down the network. The test version launched on January 7, 2026, and the full upgrade is planned for January 22, 2026.

Why it matters: This is a positive long-term development for Stellar (XLM), as privacy features could attract businesses and institutions that need confidentiality. However, privacy tools may face regulatory challenges. (Source)

Conclusion

Stellar’s updates in late 2025 show a clear focus on building a scalable, connected, and private platform for decentralized finance and enterprise use. With major companies like Visa and MoneyGram already using Stellar’s network, the question is whether Stellar can become the go-to platform for combining traditional finance with decentralized finance.

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Why did the price of XLM fall?

Stellar (XLM) dropped 2.52% in the last 24 hours, underperforming Bitcoin (+1.1%) and Ethereum (+1.8%). This decline follows a broader weakness in altcoins and some technical setbacks.

  1. Technical Breakdown – XLM fell below its $0.225 support level, sparking bearish momentum.
  2. Market Sentiment – The market is focused on "Bitcoin Season," with investors moving money away from altcoins.
  3. ETF Flow Shifts – Investors are favoring large, established cryptocurrencies, leaving XLM’s payment-focused role less attractive.

Deep Dive

1. Technical Breakdown (Bearish Impact)

Overview:
On December 27, 2025, XLM dropped below a key support level at $0.225 (CoinMarketCap) and has since hovered around $0.21. Resistance levels are now near the 30-day moving average ($0.230) and the 200-day moving average ($0.326).

What this means:

2. Altcoin Liquidity Drought (Bearish Impact)

Overview:
Bitcoin’s market dominance increased to 59.08% as of December 30, 2025, while the Altcoin Season Index is low at 20/100. Overall crypto trading volumes dropped 12.82% over the past week, with most activity focused on Bitcoin derivatives.

What this means:

3. ETF-Driven Market Rotations (Mixed Impact)

Overview:
Recent reports show that investors using Exchange-Traded Funds (ETFs) are shifting their focus toward more established cryptocurrencies like Bitcoin and Ethereum, moving away from payment-focused coins like XLM (CryptoNewsLand).

What this means:

Conclusion

XLM’s recent drop is driven by technical factors, a market shift favoring Bitcoin, and a lack of immediate catalysts supporting its payment-focused niche. While the LayerZero partnership could enhance Stellar’s long-term utility, near-term sentiment remains tied to Bitcoin’s market dominance.

What to watch: Can XLM maintain support at $0.21, or will falling below that level accelerate the decline toward $0.15? Keep an eye on Bitcoin’s dominance and Stellar’s on-chain transaction activity for signs of a potential turnaround.

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