Government debt is moving further into crypto infrastructure, with Stellar emerging as the leading public blockchain for tokenized sovereign debt issued outside the United States. Tokenization refers to representing securities as blockchain-based tokens so they can be transferred and settled on public networks — a format that issuers and asset managers have increasingly applied to short-term sovereign instruments.

According to RWA.xyz data cited by Stellar, the network held approximately $490 million in tokenized non-U.S. government debt as of August 20, 2026. Stellar has led the category since February, when it moved ahead of Ethereum.

The figure covers sovereign instruments issued outside the United States and denominated in currencies other than the U.S. dollar. Ethereum remains the largest blockchain for U.S. Treasuries and a leading network in the broader real-world asset (RWA) market. However, the dominant and growing area of government debt activity is increasingly international. That split highlights how tokenization is extending beyond the dollar-denominated Treasury products that anchored the early RWA market into bonds issued in other currencies and jurisdictions.

Stellar’s lead has coincided with substantial growth in its RWA product portfolio. Excluding stablecoins, the value of other tokenized assets on the network rose from $500 million to $854.6 million by the end of 2025. It reached $1 billion in January 2026, $1.52 billion at the end of the first quarter, $2 billion in April and $3 billion in June. Overall, Stellar’s tokenized RWA value excluding stablecoins increased more than tenfold from early 2025 through June 2026.

Mexican CETES and European Treasury Bills Support Growth

Several products have contributed to Stellar’s activity in sovereign debt. Etherfuse has brought Mexican CETES — short-term Mexican government securities — and Brazilian Treasury bills onto the blockchain through its Stablebonds products. Spiko’s euro-denominated Treasury bill fund also grew to approximately $970 million from about $520 million a year earlier, with most of that growth occurring on Stellar.

The network’s government-debt activity has also expanded geographically through tokens representing South Korean Treasury bonds and a digital sovereign bond from the Marshall Islands. Mexico, Brazil, South Korea and European government debt are among the areas supporting Stellar’s growth in on-chain sovereign markets, showing that adoption of tokenized sovereign instruments spans multiple regions and currencies.

Stablecoins Provide Settlement Liquidity

Stellar’s government-debt growth has occurred alongside increased stablecoin activity on the network. Total payment volume rose 72% year over year to $5.5 billion during the first quarter of 2026, while transaction velocity increased 75%.

Euro-denominated projects, including EURCV, developed by Société Générale-FORGE, and EURAU, issued by AllUnity, also grew during the period. Total USDC market capitalization surpassed $256 million in the first quarter.

This infrastructure is relevant to tokenized government debt because market participants need a liquid digital settlement asset alongside the underlying security. For euro-denominated funds such as Spiko’s, euro stablecoins on the same network provide a matching settlement currency in digital form.

Why Sovereign Debt Issuers Are Using Stellar

Stellar’s architecture is designed for cross-border and multi-currency payments. Transactions cost fractions of a cent and settle within seconds. The network also provides asset-based controls and compliance features for regulated financial products.

Leading financial institutions and tokenized products are already part of the ecosystem. Assets issued or operating on Stellar include Franklin Templeton’s BENJI, Ondo’s USDY and WisdomTree’s WTGXX. Institutions including U.S. Bank have also become involved in the broader ecosystem.

As real-world assets expand beyond U.S. Treasuries, Stellar’s existing capabilities in cross-border and multi-currency payments are being applied to non-U.S. sovereign debt. Because the category is tracked by RWA.xyz and updated with each new issuance, Stellar’s $490 million lead and the trajectory of funds like Spiko’s serve as measurable reference points for how non-U.S. sovereign tokenization develops from here.

Source: CryptoNinjas

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