Stellar Lumens (XLM) and Its Growing Role in Institutional Finance AllinCrypto August 26, 2025
Stellar Lumens (XLM) is a network designed to foster global financial inclusion. The Stellar Development Foundation (SDF) has focused on extending access to underbanked regions while establishing strategic partnerships with leading financial institutions.
As Stellar’s network continues to expand, the network has been adopted by leading firms and banks for tokenization and cross-border payments.
Let’s explore some of the Stellar network’s major institutional partnerships that highlight Stellar’s utility and industry-wide potential.
Circle USDC Issuance on Stellar
One of Stellar’s most popular integrations is the issuance of USDC, Circle’s regulated stablecoin backed by the United States Dollar. By enabling native stablecoin issuance, Stellar allows fintech firms to access Circle’s API, supporting banking and treasury services directly within the Stellar ecosystem.
Stablecoin issuance on Stellar has grown significantly, with $184 million issued via Circle and the Euro EURC token also by Circle at $2.1 million.
MoneyGram
MoneyGram, a leader in global payments, partnered with Stellar to enable crypto-to-cash and cash-to-crypto easy conversions. Thanks to Stellar’s low fees and near-instant settlement timing, users can quickly transfer value across borders, enhancing financial accessibility for unbanked and underbanked populations.
The integration allows USDC on Stellar to be converted to local currencies at MoneyGram locations and online with web wallets, enabling seamless interoperability between digital assets and traditional cash. This partnership underscores Stellar’s commitment to bridging digital and traditional finance.
Franklin Templeton and Tokenized Funds
Franklin Templeton, a global asset management firm, leveraged Stellar to launch the Franklin OnChain U.S. Government Money Fund. Valued at over $781 million, with $502 million of assets recorded on Stellar, the fund represents one of the first regulated mutual funds to utilize a public blockchain for tokenization.
Stellar’s usage allows for efficient clearing, enhanced transparency, and 24/7 market access with very low transaction fees.
ClickPesa: Expanding Financial Access in East Africa
East African payment provider ClickPesa has adopted Stellar to streamline B2B payments across Tanzania, Kenya, and Rwanda.
By reducing foreign exchange costs and settlement times, Stellar enables faster growth for SMEs in developing markets, highlighting its potential to enhance inclusive financial infrastructure in emerging economies.
PayPal’s PYUSD on Stellar
PayPal has issued its PYUSD stablecoin on Stellar, complementing its Ethereum-based launch. Stellar’s low transaction fees and rapid settlement times make it ideal for everyday transactions and cross-border payments.
From May Zabaneh, Vice President of Blockchain at PayPal: “Stablecoins combine the power of blockchain with the stability of fiat currency. Stellar enables faster, more efficient cross-border payments, advancing the real-world utility of digital currencies.”
The integration of PYUSD demonstrates Stellar’s capacity to support mainstream adoption of stablecoins while maintaining compliance with regulatory requirements.
Stellar’s Growing Institutional Ecosystem
Stellar’s adoption across fintech, asset management, payments, and remittances reflects its expanding influence in institutional finance.
Partnerships with Circle, MoneyGram, Franklin Templeton, and PayPal show just how the XLM network’s versatility, reliability, and scalability can be utilized.
Looking ahead, Stellar aims to increase DeFi usage and expand real-world asset tokenizations in 2026, potentially attracting millions of new users and billions in TVL to the network. With its focus on compliance, low fees, and fast settlements, Stellar is emerging as a foundational blockchain for institutional tokenizations and digital finance.
Stellar is quickly and very easily proving itself as a reliable bridge between traditional finance and crypto. From stablecoins to tokenized funds and global remittances, Stellar’s partnerships explore the network’s potential to change the way financial services operate.
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