Stellar (XLM) has overtaken Ethereum in the total value of non-US government debt tokenized on-chain, according to on-chain data that surfaced this week. The tokenized non-US sovereign debt on the Stellar network now exceeds $520 million and continues to grow.

This figure refers specifically to sovereign debt issued by governments outside the United States — not total real-world assets (RWAs). The broader RWA tokenization market, which spans tokenized Treasuries, credit, commodities, and real estate, has been one of the most closely watched growth areas in digital assets as traditional financial institutions explore blockchain-based issuance and settlement. While Ethereum remains dominant in the much larger US Treasuries category, Stellar has established a clear lead in the tokenization of government debt from other nations.

How Stellar Built Its Lead

The growth has been gradual rather than sudden. Platforms such as Etherfuse have been issuing "Stablebonds" — tokenized instruments backed by short-term government debt from multiple countries — natively on the Stellar blockchain.

These include Mexican CETES (short-term federal treasury certificates), Brazilian Tesouro bonds, European government securities, and South Korean Treasury Bonds (KTBs). Spiko has also generated notable volume with euro-denominated treasury products and other non-US instruments.

3/ Most of this batch is real-world assets moving onchain. @FTDA_US's BENJI is a tokenized money market fund. @matrixdock's XAUm is tokenized gold, one LBMA-grade troy ounce per token. @etherfuse issues Stablebonds, tokenized emerging-market sovereign debt including Mexican…

— RedStone ♦️ (@redstone_defi) August 3, 2026

Stellar's low transaction fees, fast settlement finality, and payments-focused architecture have made it well-suited for these issuers. For cross-border sovereign instruments from Mexico, Brazil, the European Union, or South Korea, the network's design offers cost-efficient transfers and rapid settlement. On-chain issuance of non-US sovereign debt can also broaden access for international investors who may face friction purchasing these instruments through traditional channels, particularly for emerging-market debt.

Smaller sovereign debt initiatives have also launched on Stellar, including the Marshall Islands' digital sovereign bond, which was used to fund on-chain universal basic income payments. The trend has been consistent: issuers focusing on debt beyond US Treasuries have repeatedly selected the same blockchain.

Ethereum continues to lead the broader RWA sector and hosts the largest US Treasury tokenization funds. Other networks, including Solana, Polygon, and Avalanche, are also actively pursuing tokenized asset issuance, making the competitive landscape for institutional RWAs increasingly crowded. However, within the specific category of non-US government debt, Stellar currently holds the larger share.

Circle's USDC Adds to Stellar's Momentum

Circle's USDC stablecoin is now live natively on Stellar, with Cross-Chain Transfer Protocol (CCTP) support in place. This provides the network with direct dollar liquidity access without relying on wrapped tokens. For a blockchain focused on real-world payments and tokenized assets, native USDC integration reduces friction for issuers and users.

$XLM just surpassed Ethereum in non-US government debt tokenized on-chain. $520M+ and counting. Circle's USDC protocol just went live on Stellar too. The tokenization race: $XLM is quietly winning a lane. #tokenization #XLM

— VW (@VWFADZ) August 4, 2026

Tokenization discussions typically center on US Treasuries, given the dollar's dominant role in global finance. Non-US sovereign debt — including Mexican CETES, Brazilian Tesouro bonds, European government securities, and Korean KTBs — has received comparatively less attention. However, as tokenized volumes increase and issuers continue to select Stellar as their preferred network, this segment is becoming a notable area within the broader RWA landscape.

The $520 million-plus figure represents a specific data point indicating that XLM is establishing a presence in a growing segment of the tokenization market, even as much of the industry's attention remains focused on larger chains and US-dollar-denominated instruments. Whether this lead attracts additional sovereign issuers and expands the non-US debt category on-chain will be a key dynamic to monitor as the RWA sector continues to mature.