The tokenization of real-world assets has become one of the most important use cases for crypto networks in the industry.
By bringing assets such as money market funds, real estate, carbon credits, or even precious metals like gold on-chain, enterprises and institutions can unlock new liquidity and create entirely new markets.
Among the networks positioning themselves as leaders in this space, Hedera Hashgraph (HBAR) and Stellar Lumens (XLM) stand out for their focus on institutional adoption and financial application. Both networks have unique strengths, but also face distinct challenges when it comes to the tokenization of RWAs.
Hedera is designed for enterprise-grade adoption and offers technical advantages that directly benefit tokenization efforts. Hedera’s Hashgraph consensus mechanism (ABFT), provides fast finality with predictable low fees.
The network is highly suitable for enterprises, while the Hedera Council, staffed by the likes of Google, IBM, and more, provides unmatched industry trust.
A major advantage for Hedera is its Hedera Token Service (HTS). The token service allows developers and enterprises to create and manage tokens natively without smart contracts, reducing risks and complexities.
This is particularly appealing for tokenized financial instruments, where compliance and security must meet strict regulatory requirements. Additionally, Hedera has integrated with major players in the tokenization space, including Archax and Aberdeen Investments. These partnerships show strong institutional confidence in Hedera’s infrastructure for RWAs, with Lloyds Bank recently using Hedera to tokenize UK MMFs.
Another strength is Hedera’s sustainability narrative. As a carbon-negative network, it is attractive for companies that need to meet environmental, social, and ESG goals. Projects like DOVU and the Hedera Guardian emphasize how sustainability assets like carbon credits can be tracked and verified on the network.
Stellar has a different approach to tokenization, with its roots firmly placed in cross-border payments and stablecoin issuance, making finance available in underbanked regions.
The Stellar Development Foundation has built a strong ecosystem that supports stablecoins like Circle’s USDC, EURC, and PayPal’s PYUSD stablecoin, which has been launched on the XLM network. This makes Stellar an attractive option for institutions that want to tokenize fiat-backed assets or improve remittance infrastructure.
One of Stellar’s strongest institutional partnerships is with Franklin Templeton, which launched the Franklin OnChain U.S. Government Money Fund (BENJI) on the Stellar blockchain.
BENJI represents a major milestone in tokenization on Stellar, showing that traditional finance firms see the network as a platform for regulated assets. Templeton’s BENJI, as of September 2025, holds $498M worth of assets on Stellar.
Stellar also benefits from its accessibility in emerging markets, with partnerships such as MoneyGram and ClickPesa demonstrating real-world usage of tokenized assets and digital money for everyday life.
By focusing on inclusivity and global payment systems, Stellar is able to create a strong base for stablecoins and payment-related RWAs.
While Hedera is technically powerful, one challenge lies in its relative lack of mainstream recognition compared to Ethereum or Ripple, but that tide may soon be changing. In the White House Crypto Report, Hedera was referenced, showing that the top crypto researchers in the US government are aware of HBAR and its capabilities.
Stellar could face limitations in scalability compared to Hedera. Its consensus mechanism is efficient for payments, but could struggle when it comes to handling complex tokenization frameworks or advanced compliance needs, which HBAR is able to integrate into smart contracts.
Stellar’s focus on payments and stablecoins may also mean it is less prepared than Hedera for tokenizing more sophisticated financial instruments. Despite this, XLM can dominate in payments, with Nadine Chakar, Managing Director and Global Head of DTCC, openly supporting the Stellar network for various use cases, including tokenization.
Both Hedera and Stellar play critical roles in advancing tokenization. Hedera’s enterprise-grade architecture makes it ideal for large-scale institutional RWAs, including tokenized funds, carbon markets, and regulated securities.
Stellar excels at payments, stablecoins, remittances, and financial inclusion, bringing tokenization to everyday use cases in emerging economies.
In the long run, the two networks may not compete directly but rather complement one another in a multi-chain industry. Hedera could dominate in institutional-grade tokenization, while Stellar continues to thrive as a platform for payments with stints in tokenization. Together, they both represent the bright future of tokenized finance.
The post Hedera HBAR vs Stellar XLM: Comparing RWA Tokenization first appeared on AllinCrypto.
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