Stellar Development Foundation (SDF) is gearing up for a significant leap into mainstream finance, aiming to integrate some of the biggest names in payments and asset management into its blockchain network by the end of 2025. This ambitious move, signaled by SDF’s leadership, promises to be a game-changer in the blockchain industry, especially for Stellar’s native cryptocurrency, XLM.
A Year of Groundwork
José Fernández da Ponte, who took on the role of President & Chief Growth Officer at SDF in mid-July, shared insights into this strategic acceleration alongside SDF CEO Denelle Dixon. Fernández da Ponte emphasized that the past year has been dedicated to laying a robust technical and market foundation. “We are the blockchain for financial services at scale,” he stated, hinting that the upcoming months will see major players in payments and asset management going live on Stellar.
The executive’s confidence is backed by impressive growth figures from Stellar’s on-chain economy. Over the past year, Total Value Locked (TVL) in decentralized finance (DeFi) has doubled, whereas Stellar’s TVL has experienced a staggering ninefold increase. This growth is attributed to community-driven wallets and protocols, along with ongoing enhancements to Stellar’s open-source, permissionless infrastructure.
Protocol 23: A Catalyst for Growth
Denelle Dixon described the first half of 2025 as a period of laying the groundwork, with the latter half expected to deliver substantial technological advancements. A key component of this progress is Protocol 23, which Dixon believes will make Stellar “stronger, faster, and developers’ lives easier.” This upgrade is designed to enhance Stellar’s capabilities, making it more attractive to payments processors and asset managers.
The upcoming Protocol 23, dubbed “Whisk,” includes eight Core Advancement Proposals. These proposals address parallelized processing, unified events, and improvements in fees and throughput, alongside developer-friendly refinements for Soroban smart contracts. These enhancements are intended to elevate Stellar’s performance to meet the expectations of institutional-grade clients.
Expanding the Stablecoin Universe
A significant part of SDF’s strategy involves the expansion of the stablecoin ecosystem on the Stellar network. Denelle Dixon highlighted the on-network growth of stablecoins, mentioning the announcement of PayPal’s dollar stablecoin, PYUSD, on Stellar. Although regulatory approval from the New York State Department of Financial Services is still pending, this move could broaden PYUSD’s distribution and add to Stellar’s credibility as a major player in the blockchain space.
The announcement of new assets and the scaling of existing ones aligns with SDF’s roadmap for 2025, which emphasizes real-world payments, deeper DeFi integration, and achieving top-tier TVL rankings. The integration of high-profile issuers like PayPal is expected to strengthen Stellar’s payments-stablecoin pillar.
Industry Buzz and Market Reactions
Stellar’s leadership is keen on converting its strategic pipeline into tangible announcements at Meridian, SDF’s flagship annual conference, scheduled for September 17–18 in Rio de Janeiro. The event promises to bring together builders, policy influencers, and potential enterprise adopters, aligning perfectly with the leadership’s timeline for big announcements. However, Dixon and Fernández da Ponte have yet to disclose specific partners.
As for the impact on XLM’s price, the market remains cautious. XLM is currently trading around $0.379, slightly below the mid-summer high of $0.52. Investors are waiting for concrete developments, such as marquee partner integrations or visible PYUSD settlement flows, to drive a significant price rally. Crypto analyst Crypto Patel highlighted a bullish setup, noting that XLM’s price is retracing into a bullish Orderflow Zone, with a strong rejection expected near current support levels.
Looking Ahead
While the crypto community is buzzing with anticipation, the integration of major financial players into Stellar’s network could indeed lead to a bullish surge for XLM. The coming weeks and months will be crucial for Stellar as it seeks to deliver on its promise of becoming a blockchain powerhouse for financial services.
As the world of blockchain continues to evolve, Stellar’s strategic advancements and partnerships could position it as a frontrunner in the race to mainstream finance. Investors and industry watchers alike will be keeping a close eye on the developments at Meridian and beyond, eager to see if Stellar can indeed fulfill its ambitious goals for 2025 and beyond.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
