Stellar (XLM) Price Prediction 2025: U.S. Bank Tests Stablecoin Issuance - Can XLM Regain Bullish Strength?

Stellar’s ecosystem receives a major credibility boost as U.S. Bank, PwC, and the Stellar Development Foundation work together to test custom stablecoin issuance. The news signals real institutional demand for programmable money.

U.S. Bank executives emphasise why Stellar fits regulated banking needs:

• The network gives issuers the ability to freeze assets, unwind transfers, and maintain strict KYC alignment.

• Settlement finalises in 3–5 seconds, and fees cost less than a cent.

• The chain maintains 99.99% uptime for more than a decade.

These statements make one thing clear. Traditional finance wants programmable assets, but with bank-grade control. Stellar offers exactly that.

A quick question comes to mind: If institutions keep choosing Stellar, does XLM gain an indirect but powerful demand driver?

It seems likely. Confidence builds each time a major institution validates the blockchain.

Stellar’s Architecture Supports Real-World Finance

Stellar focuses on practical financial infrastructure, not hype-driven narratives. The design supports asset issuance, cross-border payments, and high-volume settlement.

Core benefits that institutions care about

• Fast settlement• Built-in compliance controls• Global reach through anchors• Transparent transaction paths• Low operating costs

Anchors play a crucial role because they convert local currency into digital assets and vice versa. A bank in Europe can send money to Asia, and both sides keep their local currency. No correspondent bank steps in. That’s the streamlined design Stellar aims for.

Is that enough to push wider adoption? Yes,  because banks prioritise reliability over experimentation.

José Fernández da Ponte from SDF sums it up well: institutions want blockchains that stay online and do not compete with them. Stellar fits that description.

Where Stellar Stands in the Institutional Race

The market now watches a clear trend. Banks and major financial companies explore tokenisation.

Citigroup works with Coinbase. Ripple raises hundreds of millions to target banks. Franklin Templeton leverages blockchain rails. Now, U.S. Bank tests Stellar in real payment environments.

Why do some institutions avoid blockchains tied to corporate competitors? Stellar offers neutrality and that matters when banks pick long-term partners.

With 9.8 million wallets and $32 billion processed in the last year, Stellar shows that its usage grows at a steady pace. Institutions now evaluate whether they can move larger volumes on-chain.

Will this bring long-term value to XLM? The answer leans yes, especially as more stablecoins and tokenised assets launch on the network.

Technical Outlook: XLM Fights a Descending Pattern

XLM struggles inside a broad falling channel. The trend stays pressured by lower highs and a steady bearish slope.

Technical snapshot

• Price drifts lower as sellers control short-term structure.

• A small triangle broke down, sending XLM back into the channel’s mid-zone.

• The $0.21–$0.22 region looks like the next major reaction zone.

Source: X

A break above the descending resistance line signals a change in trend and challenges the bearish continuation. Traders may want to watch this line closely. A question worth asking: Does institutional confidence eventually translate into a shift in market momentum? For now, sellers hold the upper hand.

ISO 20022 Support Strengthens Long-Term Outlook

ISO 20022 compliance matters because banks aim for unified financial messaging standards across borders.

Stellar benefits in several ways: • Faster integration with bank platforms • Better compatibility with global payment systems • Stronger institutional trust

As more banks adopt ISO 20022, Stellar becomes a more attractive settlement layer for tokenised assets.

XLM Price Prediction Table (2025)