Stellar's Stablecoin Boom Tests Its Native Token's Role

The Stellar blockchain is expanding its capabilities beyond simple payments, integrating with institutions and stablecoins. BVNK has integrated Stellar for cross-border payments across over 130 markets, while USDT0 now runs on Stellar, allowing businesses to move digital dollars internationally without holding or using XLM directly.

U.S. Bank has also piloted its USBDC stablecoin on Stellar for North American to European settlement. These developments raise a question about the relationship between network growth and token demand: does expanding stablecoin activity on Stellar translate into higher demand for XLM?

The distinction between network utility and token value capture is crucial here. A company moving funds through Stellar may rely entirely on stablecoins like USDC or USDT0 for settlement, with transaction values denominated in digital dollars rather than XLM.