The American bank is testing the issuance of stablecoins on Stellar, indicating strong institutional confidence.
Stellar is launching upgrades focusing on ZK technology, enhancing privacy and institutional appeal.
The XLM coin sits at significant support with an increase in the total value of liquidity locked in decentralized finance, indicating a potential recovery.
The Stellar network ($XLM ) is having its most active development year in 2025, with a strong focus on attracting major financial institutions. However, the price movement of XLM has gone in the opposite direction despite strong fundamentals.
These developments underscore Stellar's increasing presence in cross-border payments. Expectations for a strong recovery in the price of XLM towards the end of the year are also rising.
Stellar expands its institutional reach.
The US Bank – one of the largest commercial banks in the United States – has actively begun testing the issuance of stablecoins on the Stellar network.
Choosing a major traditional financial institution like Stellar instead of Ethereum or other Layer 2 solutions is indicative of a decisive step. It hints that the network has reached the reliability and performance level required by banks.
Mike Villano, Senior Vice President, Head of Digital Asset Products at US Bank, stated, "For banking customers, we need to think about other protective measures around know your customer, contract unwinding ability, and the ability to recover transactions. One of the great things about the Stellar platform is that as we conduct more research and development on it, we've learned that it has the ability in its core operational layer to freeze assets and unwind contracts."
This information spread quickly among the XLM community, reinforcing the belief that the US Bank's move could encourage other banks to follow suit. Greater institutional adoption could support network usage and strengthen XLM pricing.
Meanwhile, the AUDD stablecoin, pegged 1:1 to the Australian dollar, has officially surpassed $1 billion in organic transaction volume on Stellar. This achievement is notable as it reflects real user and business activity, rather than wash trading or liquidity farming, which is often seen in other crypto projects.
The Stellar Foundation prioritizes security as institutional privacy needs grow.
The most significant technical development comes with the launch of X-Ray, as part of Protocol 25, which offers infrastructure for privacy-based applications that are knowledge-free.
This development aligns with the current market behavior. A report from BeInCrypto indicates that institutions are gradually moving away from the public Ethereum chain toward privacy-focused blockchains.
Stellar's application of advanced ZK technology enhances its competitive edge in the institutional capital race.
Individual investors have also shifted focus to Zero Knowledge (ZK) coins like Zcash (ZEC) and StarkNet (STRK). These secondary digital currencies have performed well despite the overall market correction.
XLM is trading at a crucial support level for the year.
Analysts noted that XLM is currently sitting directly on its strongest support area at 2025.
This forecast is based on two main factors. First, XLM has repeated the same descending wedge pattern twice this year. The previous pattern led to a sharp rebound.
The descending wedge structure of Stellar (XLM). Source: Elite Crypto.
Secondly, XLM flipped the 200-week exponential moving average from resistance to support. This moving average indicates strong demand near the $0.20 area.
In addition to technical indicators, metrics across the network indicate rising demand for XLM in decentralized finance (DeFi). The total value locked (TVL) on Stellar reached a new high at $168.8 million, despite the price drop over the past two months.
Total value locked in Stellar. Source: DefiLlama.
The combination of institutional developments and privacy-oriented upgrades, along with strong technical support, provides a basis for investors to anticipate a recovery in XLM as the end of the year approaches.
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