The DTCC-Stellar partnership involves tokenizing specific assets (Russell 1000 equities, major index ETFs, and US treasuries) on Stellar's blockchain, but this does not mean the actual $114 trillion in assets will be transferred to Stellar; instead, the tokens represent claims on these assets while the underlying value remains in DTCC's traditional custodial system. The viral price calculations suggesting $2,000-$3,000 per XLM are unrealistic because tokenized assets are separate issued assets that do not require one-to-one reserves of XLM, and only a small fraction of notional value needs to sit in XLM for transaction fees and liquidity. The partnership will increase onchain settlement volume and demand for XLM as a gas and liquidity asset, but the impact is much smaller than the simplistic full-backing calculations suggest.
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OMG XLM JUST MADE HISTORY!!! ($3000 XLM WHAT??)Added:
Stellar XLM had a history makingaking week, going up almost 100% off the news that Stellar is going to be partnering with the DTCC, which is the United States premier infrastructure for security settlement. This could bring trillions of dollars worth of tokenized assets onto the Stellar ecosystem, and people are already calling for two to 3,000 per XLM. Is this realistic? Should we be adjusting our expectations here?
I've got a ton of value that I want to go through and give you the actual facts that I know to be true. Let me go ahead and start here because this is truly awesome, guys. If you rode the pump, if you're making some money, please support the video. I did talk about buying seller Tuesday right before this went up and I know people made some money, so I love to see that. On the recent Stellar and DTCC news, XLM's interest over time on Google Trends spiked from virtually 0 to 100 in just a few days. It's worth noting that the interest has now dropped back down to the levels of 40, half of the popularity after witnessing the peak in interest. So, check this out. Tuesday is when we had the live stream. I told you I was buying Stellar in that live stream. People and I were talking about it and then boom, we got the news on Wednesday and this thing took off like a rocket ship and everyone's trying to figure out what the hell is XLM and Stellar and how do I buy it? And we did see a flurry of of action. You also saw the first time ever XLM flipped XRP with double volume on up bitid. So the Korean exchanges are coming in strong here and it's great to see Stellar at the high point at number one. I know XRP usually here is in front of Bitcoin and now to see Stellar up here is really cool.
Space ID, what's that? That's number two in Korea, man. They're they might be on to something. We might need to look into that. XRP is here. Vtor is here. Adera Worldcoin and Bitcoin is seventh.
Ethereum is ninth. kind of shows you kind of what the temperature is right now in the crypto space. A lot of people are focused on the XRPs, the XLMs of the world, the Hideeras of the world, and that's what I've been buying the last 6 to 12 months here. All right. What XLM would be worth if it transferred and settled 114 trillion. So around $2,280 per XLM using 50 billion total circulating supply is the same simplistic full backing calculation of the four quadrillion examples. So the quick math here, 114 trillion is the total amount of assets that the DTCC holds in custodies. They're assuming that all of these assets are going to come onto Stellar, which I think is a no no here. Stellar total supply here at 50 billion. And then this is where they're getting the number of 2280 per token. If we take a look here at Stellar, just bring this up on the screen. Stellar's current market cap is 8.4 billion. The total supply of Stellar is 50 billion, which is half of XRP supply. and the current circulating supply is 33.6 billion. Now, how this is all going to work, what the partnership actually looks like and what you can expect because we know to be true. DTCC is not moving all of its assets to Stellar and even if it's a large amount of securities are tokenized there, it doesn't automatically mean that it'll drive XLM price near 2,000 per token.
What the DTCC is actually doing with Stellar. The DTCC got an SEC no action letter and a limited three-year tokenization service for certain high liquid assets. Those assets are Russell 1000 equities, major index ETFs, and US treasuries. The DTCC and Stellar Foundation announced plans to let the DTC custodied assets to be tokenized on the Stellar public network, but only as a part of the DTCC's broader multi-chain strategy here, not the sole universal ledger or DTCC that everything it touches. The first wave of DTC tokenized assets on seller is projected to be around 2027. And the DTCC has explicitly stated that it will start with certain eligible asset classes, which we went over, rather than doing the entire 100 to 114 trillion all at once that people are talking about in the headlines. DTCC continues to use its own infrastructure, which is project ion that we've talked about a lot. That's R3. And of course, Canton network alongside other chains.
Stellar is one spoke in that hub, not the entire wheel. And so how the tokenization design actually works here because I think this is what really people misunderstand. DTCC remains the legal custodian. The real securities stay on the DTCC's books and the blockchain tokens are representations of those positions carrying the same rights protections under the SEC no action letter framework. Tokens are issued as assets on Stellar, not as XLM itself.
Think of them as US dollarbacked stable coins or tokenized bonds sitting on the ledger. While XLM is the native gas and bridge and the asset that pays for fees that can be used in certain payment paths, DTCC has framed this as interoperable market infrastructure tokenized positions that can settle faster, integrate with smart contract rails and move across networks, but the underlying capitalization remains in the legacy system. What mean this means is the value of these assets still remain in the legacy systems. the representation of the asset that really has no value is going to be on the Stellar blockchain. That's going to be one. So there's no value tied to that asset. That is what people are missing here. So when people say, "Oh, we're going to bring 114 trillion on Stellar."
No, they're bringing the tokens that represent the 114 trillion on Stellar, but that 114 trillion still stays with the DTCC, and that's what people are misunderstanding. All right, impact on excellent price. What's realistic? The viral math that you screenshotted assumes that all 114 trillion of the DTCC's related assets migrate to Stellar. Those assets somehow need to be fully backed by buying and locking the entire market value and into XLM. So, you divide the total value of XLM supply. Both assumptions are off. The SEC approval and DTCC disclosures talk about a limited set of liquid assets on selected blockchains with Stellar as one option, not a mandate that all DTCC volume must be on Stellar. On Stellar tokenized assets are separate issued assets. So their value does not require onetoone reserves of XLM. Only enough XLM for the transaction fees, the liquidity pools and any specific use of the bridge asset. So there is going to be some value there on Stellar, but it's not going to be the value people think.
So a more accurate description of this is higher onchain settlement volume, more demand for XLM to pay fees and provide liquidity. If DTCC linked tokenized assets become heavily used, market makers, custodians, and apps may hold operational XLM balances and deepen XLM's asset liquidity, which can be bullish over time. But this isn't in the order of magnitude much smaller than the 114 trillion50 billion XLM because only a tiny fraction of the notional value needs to sit in XLM at any time for the network to function. All right. And so also DTC is testing a multi-chain tokenization stack and Stellar is getting a real shot here, but it's not the only DTCC h it's not the only move that it's going to make here. Tokenized stocks and treasuries will still live on stellar issued assets with the DTCC as its custodian and with the SEC blessed investor protections intact. XLM benefits from being the native gas and liquidity asset for this activity. But you cannot just divide DTCC's total notional buy and get a target price. All right, I did ask a question here. In this setup with Stellar and the DTCC, it sounds like the tokens will represent the stock or the bond, but the actual value doesn't come along with it. Says you're exactly right that the token on Stellar is a representation and the real value does not magically move on chain.
The economic value of the DTCC custody stock or bond continues to live in the DTCC's books and the issuer balance sheet. Seller just carries the claim on that value. And then where does the value actually live? DTCC still holds the securities and it's traditional custodied system. Its ledgers record who owns and what is the aggregate of the 114 trillion in asset. When DTCC tokenizes an asset, it creates a tokenized security entitlement or similar construct that is legally an entitlement and the same security held in the DTC, not a separate new security, the legal rights, the dividends, the voting, the claim on the issuer collateral value, all tie back to the off-chain entitlement DTCC books. So, until the DTCC moves their books onchain, and if they did that and some of those books lived on Stellar, now we're talking about some serious value there. But I think we're still a little bit further away from something like that. So, I hope this makes it clear with what's happening. I know that's not exactly what you wanted to hear, but I do think it's worth going through this so you understand this so you're not going around telling your friends what's happening here. I because people are getting this wrong. And you know, I get it, right? If unless you kind of know how this system works and kind of what to search for and what to bring up here, you're probably listening to everybody talking about a $2 to $3,000 price for XLM. Now, I believe one day we could see prices like that for XLM. Absolutely.
Right. We're we're entering a new financial system. We don't know what's about to happen. We don't know how much value will actually live inside the stellar ecosystem, but we just need to be a little bit more clear of what we're talking about here. And so, if you're wondering what are the the securities, got the Russell 1000 equities, major index ETFs, and US treasuries here. US Treasuries about 27 to 28 trillion.
Russell 1000 stocks about 40 to 45 trillion in value. Now, Chad Steinraber said, "In order for XLM to match XRP, it would need a 10x from 25cent range to $2.50 over the course of June leading up to the launch of the DTCC. This could easily be anywhere between today's price and that target. This is just the retail speculation phase of XLM, not the actual utility of XLM in the DTCC. Since trading will be limited at launch, the utility aspect is slowly building over the months leading up to October's full opencale production. the the first half of 2027 date from stellar to fullscale growth date. And so, as you can see, Stellar was uh lit up across the whole board here. The crypto environment will soon begin to cater to tokens like XRP and XLM. Since Bitcoin's inception, speculative capital has been the primary force behind value appreciation in digital assets. That capital is now being replaced by strategic investors from Wall Street. Retail participation is at an all-time low. Institutional participation is at the highest level ever. This shift is why a utility tokens are poised to surpass Bitcoin and all speculative assets such as Bitcoin and Ethereum. Institutional investors focus on fundamentals of a token, not short-term price moves. In hindsight, the outperformance of these tokens will make perfect sense for now. It may seem unlikely to an average investor.
Strategic capital, however, is already positioned before the next headline shifts attention. And so those liquidity pools at 19 cents to 20 cents are screaming to be grabbed. Market Maker sees exactly where you parked your stops. And he's licking his lips. 24 cents breaks equals the hunt is on. So, what Bank XRP is saying here is that there's a big cluster of XLM long liquidity sitting around 19 to 20 cents.
And if the price dips, there's most likely a deliberate stop hunt before a higher move when a clean breakout above 24 cents could trigger an aggressive upside. And I also have this really detailed breakdown of what Stellar is.
As you can see, it's pretty massive here. It goes over the review of Stellar, Stellar at a glance, the mission, a brief history, the ecosystem narrative, talks about the token utilities, the key features, Stellar team, the core members, the board members, the ratings, audits, the community, the conclusion. There's a lot here. I'm going to leave this link in the description in case you're starting to learn about Stellar and you want to really dive into this and get a good understanding of all of this. This is probably one of the better kind of reviews here that I've seen of Stellar and it's all in one place for you. So, that'll be down in the description.
Thank you so much for your time here. I hope you got value. Please support the content. Like, comment below. That does help the YouTube algorithm and I really appreciate you. Let's go, Stellar.
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